Iron Ore Holds Steady After Chinese Trade Data

Iron ore futures climbed above CNY 790 per ton, recovering from three-week lows as global steel production declined in April at a slower pace than in March, with the contraction in China’s steel output also moderating. The data offered some support to sentiment in the iron ore market, though underlying demand conditions remained fragile. Steel margins in China continue to face pressure amid ongoing weakness in the country’s infrastructure and property construction sectors. Last week, iron ore prices fell to multi-week lows as higher shipments from Australia and Brazil increased supply pressures, while Chinese steel mills continued to grapple with elevated inventory levels. Supply is also expected to rise further in the coming weeks, even as demand growth remains constrained, with blast furnace utilization rates already operating at relatively elevated levels.

Iron ore futures fell toward CNY 790 per ton, reaching their lowest levels in about three weeks as increased shipments from Australia and Brazil added pressure to the market while Chinese steel mills continued to struggle with elevated inventories. Industry data showed that iron ore shipments from the two major exporters rose week-on-week, while portside stockpiles across 47 Chinese ports increased by 4.2 million tons. Supply is expected to climb further in the coming weeks, even as demand growth remains limited with blast furnace operations already running at relatively high utilization rates. Meanwhile, domestic steel demand in China continued to face headwinds from weak construction activity and broader economic uncertainty. Demand for Chinese steel exports also softened, as overseas buyers remained reluctant to purchase cargoes at elevated price levels.

Iron ore futures dropped below CNY 800 per ton, reaching their lowest levels in nearly three weeks as signs of slowing economic activity in top consumer China weakened the outlook for steel demand. Economic data released earlier this week showed that China’s retail sales and industrial production both fell short of expectations, while fixed asset investment unexpectedly contracted amid the impact of the global energy crisis on businesses and consumers worldwide. Domestic steel demand in China also remained under pressure due to sluggish construction activity and broader economic uncertainty, while appetite for Chinese steel exports softened as overseas buyers showed little willingness to purchase at elevated prices. On the supply side, global iron ore shipments rose 7% in April 2026 compared with the same period last year, adding further downward pressure on the market.