Iron ore futures near CNY 730 on second weekly gain

Iron ore futures climbed toward CNY 730 per ton and were on track for a second consecutive weekly gain, supported by elevated ocean freight costs and expectations of pre-holiday restocking in top buyer China.

Poor weather in the Pacific, higher oil prices, and increased transshipment volumes from Guinea have pushed up freight costs, providing support to iron ore prices.

Industry data also showed that iron ore inventories at major Chinese ports declined in the latest week, marking a fourth consecutive weekly drop and signaling potential for restocking.

Elsewhere, Brazilian miner Usiminas temporarily suspended operations at its Samambaia iron ore plant in Itatiaiuçu from September 2, citing weaker ore prices and sharply higher freight costs.

Meanwhile, iron ore prices may face a ceiling as margins at Chinese steel mills continue to shrink.