Iron Ore Rises on Stronger Demand

Iron ore futures climbed to around CNY 760 per ton, supported by firmer demand as Chinese steel mills increased output amid a recovery in end-user consumption. Sentiment was also lifted by optimism over a potential diplomatic resolution to the Iran conflict, with a longer-term ceasefire expected to help revive Middle Eastern demand for Chinese steel. The conflict has disrupted trade flows through the Strait of Hormuz, reducing metals shipments to the Gulf. The region was China’s second-largest steel export destination last year, accounting for about 16% of its record-high exports. Meanwhile, data showed Chinese imports of iron ore and concentrates rose 11.5% year-on-year to 104.74 Mt in March, partly reflecting geopolitical shifts as cargoes initially destined for Middle East routes or nearby corridors were redirected toward East Asia.

Iron ore futures fell toward CNY 750 per ton, extending their recent decline following reports that state-backed China Mineral Resources Group permitted several steel mills to purchase cargoes from BHP Group, signaling a potential easing in a months-long commercial dispute. The development came after a visit to China by BHP’s incoming chief executive officer, Brandon Craig, who held meetings with executives from China Baowu Steel Group and CMRG. Data also showed that Chinese imports of iron ore and concentrates rose 11.5% year-on-year to 104.74 Mt in March, partly driven by geopolitical factors as shipments originally bound for routes through the Middle East or nearby corridors were redirected toward East Asian markets. Meanwhile, supply from Australia rebounded following earlier weather-related disruptions caused by Cyclone Narelle.

Iron ore futures climbed toward CNY 760 per ton, recovering part of last week’s losses as Chinese steel mills ramped up production. Sharp declines in raw material costs have improved mill profitability, supporting higher output of molten iron. Analysts also expect further restocking as iron ore consumption picks up while inventories at steel mills remain relatively low. Industry data showed stockpiles at major Chinese ports edged down 0.16% week-on-week as of April 10. Supply tightened temporarily after weather-related disruptions in Australia reduced import volumes at 47 ports by over 500,000 tons, though shipments are expected to rebound as delays ease. Meanwhile, oil prices surged again after US-Iran peace talks in Islamabad over the weekend failed to produce a deal. President Donald Trump also announced plans to blockade the Strait of Hormuz and is reportedly considering renewed strikes on Iran, raising the risk of a broader escalation in the global energy crisis.