Iron ore futures fell to around CNY 711 per ton, extending their downward trend after data showed global shipments surged 14.18% in July to 156.6 million metric tons, with Australia and Brazil responsible for most of the increase. Brazil is also entering its peak export season this quarter, while Australian shipments are expected to gradually recover following a relatively weak start to the new fiscal year.
On the demand side, China imported 108.086 million tons of iron ore and concentrates in July, a 4.09% decline from June but still 3.5% higher than a year earlier. Additional data released over the weekend indicated that both consumer and producer inflation in China, the world’s largest iron ore consumer, slowed in July, underscoring persistently weak domestic demand.
At the same time, traders are tracking an expanding strike at BHP’s Port Hedland export operations in Western Australia, which has heightened concerns about potential supply disruptions.
