FX.co ★ Iron Ore Slips on Signs of Rising Australian Supply

Iron ore futures receded to approximately CNY 703.5 per tonne on Tuesday, retreating from a two-week peak amid indications of enhanced supply from Australia, the leading exporter globally. Rio Tinto, the preeminent producer of iron ore, revealed a collaboration with Hancock Prospecting to advance the Hope Downs 2 project situated in Western Australia. As reported by Rio, the project will comprise two iron ore pits with an aggregate annual production capacity of 31 million metric tons. On the demand side, China's hot metal production—an essential metric for gauging iron ore consumption—escalated to 2.422 million tons over the previous week, based on industry reports. Production levels have remained stable at around 2.4 million tons since April, underscoring the enduring robustness of the world’s largest steel market.