Iron Ore Slips on Demand Concerns

Iron ore futures fell below CNY 760 per ton, retreating from one-month highs as seasonal weakness in Chinese steel demand and narrowing mill margins weighed on sentiment, though tighter supply expectations helped limit losses. Persistent rainfall across southern China and extreme heat in the north continued to disrupt construction activity, dampening steel consumption. Industry data also showed blast furnace capacity utilization at surveyed steel mills slipped below 90% last week, while mill profitability eased to around 37%. In addition, elevated inventories and abundant physical supply across China added further pressure to prices. However, 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, fueling concerns over near-term supply availability.