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.