Iron ore futures rose to around CNY 740 per ton on Monday, rebounding from near one-year lows after China’s state-backed commodity buyer tightened restrictions on Australian miner Fortescue Ltd. China Mineral Resources Group Ltd. instructed several domestic steel mills and traders to halt purchases of new US dollar-denominated cargoes of Fortescue’s Super Special Fines, escalating its dispute with the producer.
Prices also found support from bargain hunting following the recent slump, while diminishing expectations of additional US Federal Reserve interest rate hikes this year improved overall risk appetite. Still, iron ore has faced persistent selling in recent weeks amid a seasonal slowdown in Chinese demand and higher seaborne supply, with inventories at Chinese ports hitting a record 160 million tons last week.
