FX.co ★ Iron Ore Hits 2-Week High

Iron ore futures advanced toward CNY 790 per ton, hitting a two-week high as sentiment improved on the back of restocking demand in China ahead of the extended Labor Day holiday and a rebound in domestic steel production. At the same time, slower shipments from Australia and Brazil supported prices by contributing to a further drawdown in Chinese port inventories.

Latest data showed that stockpiles at China’s ports fell 0.7% to 164.8 million tons last week, marking a second consecutive weekly decline. In parallel, market uncertainty eased after BHP Group reached a supply agreement with China’s state-backed iron ore procurement body, resolving a months-long dispute that had weighed on confidence.

The Australian mining major announced the agreement alongside the release of its latest quarterly production results, while withholding specific contractual terms. BHP reported first-quarter iron ore output of 62.8 million tons, up 2% from a year earlier, and reaffirmed its full-year production guidance at 258 million to 269 million tons.