Iron ore futures climb toward CNY 740/ton five-week highs
Iron ore futures rose toward CNY 740 per ton, moving near five-week highs. Gains were supported by elevated freight costs and expectations of China restocking ahead of October National Day, alongside a slight increase in hot metal output.
Iron ore futures rose toward CNY 740 per ton, nearing five-week highs as elevated freight costs and expectations of pre-holiday restocking in top consumer China supported prices. Shipping costs stayed elevated amid strong energy prices after the US and Iran exchanged strikes in the Middle East over the weekend, keeping supply risks high. Investors also expected Chinese steel mills to rebuild iron ore inventories ahead of the National Day holidays in October, while hoping for a seasonal pickup in construction activity this month. Industry data showed average daily hot metal output, a key gauge of iron ore demand, edged higher last week after falling for two straight weeks.
Still, iron ore prices may run into resistance as profit margins at Chinese steel mills continue to deteriorate.