Iron Ore Gains as Hot Metal Production Picks Up

Iron ore futures rose above CNY 740 per ton, rebounding modestly from near one-year lows as hot metal production showed a slight recovery, with output restarts at some steel mills helping offset blast furnace maintenance at others. Bargain hunting and short covering also lent support to prices as near-term demand in top consumer China remained relatively resilient. Lower prices encouraged buying activity among steelmakers and traders, with daily transaction volumes for seaborne cargoes increasing sharply in recent sessions. However, the market continued to face headwinds from expectations of higher exports by major suppliers and a subdued demand outlook. Mining firms are expected to boost shipments this month to meet production targets, coinciding with a seasonal slowdown in steel consumption.