Iron Ore Slips on Record-High Inventories in China

2026-07-03 06:51 By Jam Kaimo Samonte 1 min. read

Iron ore futures fell below CNY 740 per ton, drifting back toward one-year lows after an industry report showed inventories at Chinese ports had climbed to a record 160 million tons.

The ample stockpiles have eased supply concerns for steel mills, reducing their need to purchase additional seaborne cargoes.

The bearish inventory data outweighed China's move earlier this week to limit deliveries of certain Fortescue products to selected domestic steelmakers, a step that could tighten local supply.

According to reports, the China Mineral Resources Group ordered mills and traders holding Fortescue’s Super Special Fines to take delivery before July 15, after which the blast furnace feedstock would be placed on a blacklist.

If implemented, the measure would mark a major escalation in the standoff, with negotiations over long-term supply agreements between the Australian miner and CMRG still at an impasse.



News Stream
Iron Ore Slips on Record-High Inventories in China
Iron ore futures fell below CNY 740 per ton, drifting back toward one-year lows after an industry report showed inventories at Chinese ports had climbed to a record 160 million tons. The ample stockpiles have eased supply concerns for steel mills, reducing their need to purchase additional seaborne cargoes. The bearish inventory data outweighed China's move earlier this week to limit deliveries of certain Fortescue products to selected domestic steelmakers, a step that could tighten local supply. According to reports, the China Mineral Resources Group ordered mills and traders holding Fortescue’s Super Special Fines to take delivery before July 15, after which the blast furnace feedstock would be placed on a blacklist. If implemented, the measure would mark a major escalation in the standoff, with negotiations over long-term supply agreements between the Australian miner and CMRG still at an impasse.
2026-07-03
Iron Ore Rebounds on China Supply Restrictions
Iron ore futures climbed above CNY 740 per ton, recovering from one-year lows after China’s state-backed buyer moved to restrict deliveries of certain Fortescue products to selected domestic steel mills, tightening supply in the world’s largest market for the steelmaking raw material. According to reports, the China Mineral Resources Group instructed mills and traders holding Fortescue’s Super Special Fines to take delivery before July 15, after which the blast furnace feedstock would be blacklisted. If enforced, the measure would mark a significant escalation in the dispute between the two sides, as negotiations over long-term supply contracts between the Australian miner and CMRG remain deadlocked. Meanwhile, iron ore prices had come under pressure in recent weeks due to ample global supply and weakening demand from the steel sector.
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Iron Ore Slides Toward 1-Year Low
Iron ore futures fell below CNY 740 per ton, drifting toward their lowest levels in nearly a year as new European Union trade restrictions on steel imports clouded the demand outlook. The European Commission introduced quotas under a new system to curb duty-free steel imports into the EU, aiming to protect the region’s steel industry and boost capacity utilization. Meanwhile, global supply remained abundant, while iron ore inventories at Chinese ports stayed near historically high levels. Steel demand from China’s construction sector also remained subdued, while manufacturing-related demand continued to soften, a trend that could persist for months. At the same time, net steel exports have been unable to match the robust levels recorded during the same period last year.
2026-07-01