Iron Ore Firms on Supply Concerns

Iron ore futures held above CNY 750 per ton, hovering near one-month highs amid growing concerns over tightening global supplies. Australian mining giant BHP Group reported a 3% year-on-year decline in iron ore production to 68.1 million tons in the three months to June, as the company continued to prioritize expansion projects in copper and potash. A looming strike by BHP workers at its Port Hedland operations in Western Australia also raised the risk of further supply disruptions, with hundreds of employees set to walk off the job after wage negotiations broke down. However, Rio Tinto reported higher quarterly iron ore shipments, suggesting global supplies remain relatively ample. In China, the state-backed China Mineral Resources Group has barred some steel mills from taking delivery of Fortescue’s Super Special Fines and Fortune Fines, both lower-grade iron ore products, adding to concerns over near-term supply.