FX.co ★ Iron Ore Rebounds on China Supply Restrictions

Iron ore futures rose above CNY 740 per ton, rebounding from one-year lows after China’s state-backed purchasing agency moved to restrict deliveries of certain Fortescue products to selected domestic steelmakers, tightening supply in the world’s largest market for steelmaking raw materials. According to reports, China Mineral Resources Group (CMRG) instructed mills and traders holding Fortescue’s Super Special Fines to take delivery by July 15, after which the blast furnace feedstock would be blacklisted. If implemented, the measure would represent a significant escalation in the standoff between the two sides, as negotiations over long-term supply contracts between the Australian miner and CMRG remain deadlocked. Previously, iron ore prices had been under pressure for several weeks due to abundant global supply and softening demand from the steel sector.