FX.co ★ Iron Ore Gains as Hot Metal Production Picks Up

Iron ore futures climbed back above CNY 740 per ton, staging a modest rebound from near one-year lows as hot metal output showed a mild recovery. Restarts at some steel mills helped offset blast furnace maintenance at others, stabilizing overall production. Prices also found support from bargain hunting and short covering, with near-term demand in top consumer China proving relatively resilient.

The recent price decline spurred buying interest from steelmakers and traders, driving a sharp increase in daily transaction volumes for seaborne cargoes. Nonetheless, the market still faces pressure from expectations of higher exports by major suppliers and a muted demand outlook. Mining companies are anticipated to ramp up shipments this month to meet production targets, coinciding with a seasonal slowdown in steel consumption.