Iron Ore Rallies on Planned BHP Worker Strike

Iron ore futures rose above CNY 740 per ton, extending their rebound from near one-year lows after reports that workers at BHP Group’s Port Hedland iron ore terminal in Western Australia will stage an eight-hour strike on July 16, raising concerns over potential supply disruptions. The industrial action will involve operators and maintenance workers at the world’s largest iron ore export hub, as employees push for an agreement that better reflects their specialist skills, challenging working conditions, and significant personal costs. Port Hedland exported 51 million tons of iron ore in May and a record 575 million tons last year, with China accounting for the bulk of shipments. Meanwhile, state-backed China Mineral Resources Group Ltd. recently broadened restrictions on Australian miner Fortescue Ltd., adding further pressure to global iron ore supply.

Iron ore futures climbed above CNY 740 per ton, rebounding from near one-year lows as China’s state-backed commodity buyer expanded restrictions on Australian miner Fortescue Ltd. China Mineral Resources Group Ltd. has instructed several domestic steel mills and traders to refrain from purchasing new US dollar-denominated cargoes of Fortescue’s Super Special Fines product, intensifying its dispute with the miner. The market also drew support from bargain buying following the recent price slump, while easing expectations for US Federal Reserve interest rate hikes this year improved overall risk sentiment. Iron ore had come under sustained selling pressure in recent weeks due to a seasonal slowdown in Chinese demand and rising seaborne supplies, with inventories at Chinese ports reaching a record 160 million tons last week.

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.