Iron ore futures climbed above CNY 780 per ton, their highest level in more than a week, supported by signs of resilient demand in top consumer China. Steel mills have also maintained relatively low inventories, which could spur restocking ahead of the May Day holiday from May 1 to 5.
On the supply side, industry data showed that port stockpiles in China fell 0.7% to 164.8 million tons last week, marking a second consecutive weekly decline. At the same time, an ongoing dispute between state-backed China Mineral Resources Group and Australia’s BHP Group has added uncertainty to the supply outlook.
Further weighing on sentiment, prolonged disruptions in the Strait of Hormuz have constrained metals shipments to the Gulf. The region was China’s second-largest steel export market last year, accounting for about 16% of its record-high steel exports.
