Iron Ore Holds Decline as China Trading Resumes

Iron ore futures climbed toward CNY 790 per ton, reaching a two-week high as sentiment improved on restocking activity in China ahead of the extended Labor Day holiday, alongside a rebound in domestic steel output. Shipments from Australia and Brazil also slowed, contributing to a drawdown in port inventories across China. Recent data showed stockpiles at Chinese ports fell 0.7% to 164.8 million tons last week, marking a second consecutive decline. Meanwhile, BHP Group reached a supply agreement with China’s state-backed iron ore buyer, resolving a months-long dispute that had unsettled the market. The Australian mining giant confirmed the deal while releasing its latest quarterly production figures, though it did not disclose specific contract details. BHP reported first-quarter iron ore output of 62.8 million tons, up 2% year-on-year, and maintained its full-year production guidance of 258 million to 269 million tons.

Iron ore futures rose above CNY 780 per ton, reaching their highest level in more than a week amid signs of resilient demand in top consumer China. Steel mills have also kept inventories relatively low, potentially driving restocking activity ahead of the May Day holiday from May 1 to 5. On the supply side, industry data showed port stockpiles in China declined 0.7% to 164.8 million tons last week, marking a second straight drop. Meanwhile, an ongoing dispute between state-backed China Mineral Resources Group and Australia’s BHP Group has clouded the supply outlook. At the same time, prolonged disruptions in the Strait of Hormuz have weighed on sentiment by curbing metals shipments to the Gulf, a region that was China’s second-largest steel export destination last year, accounting for about 16% of its record-high exports.

Iron ore futures climbed above CNY 770 per ton, reaching a one-week high as stronger-than-expected economic data from top consumer China boosted market sentiment. China’s economy expanded 5% year-on-year in the first quarter, accelerating from 4.5% in the previous quarter and surpassing expectations of a 4.9% increase. An improving geopolitical backdrop also lent support, with reports indicating Washington and Tehran are considering extending their two-week ceasefire to allow more time for negotiations, even as the Strait of Hormuz remains effectively closed under a dual blockade. The conflict has disrupted trade flows, curbing metals shipments to the Gulf, a region that was China’s second-largest steel export destination last year, accounting for about 16% of its record-high exports.