FX.co ★ Iron Ore Rises on Strong China Demand

Iron ore futures increased to approximately CNY 786 per tonne on Monday, recovering from nearly a four-week low, driven by renewed indications of strong demand from China. Recent data revealed that China's iron ore imports in July rose by 2% compared to the previous year, coming in significantly above the average monthly volume recorded so far this year. Market analysts observed that restocking activities by Chinese steel mills, buoyed by favorable profit margins and relatively low inventory levels, continued to support prices. Concurrently, a Chinese consultancy reported that several steel mills have been instructed by authorities to temporarily halt production later this month as part of measures to curb air pollution. However, seasonal declines in consumption persist, as extremely high temperatures and heavy rainfall have severely disrupted downstream construction activities, leading to an accumulation of steel inventories.