Iron Ore Rises for Fourth Straight Session

Iron ore futures climbed above CNY 715 per ton on Monday, extending gains for a fourth consecutive session on expectations that Chinese steel mills will increase raw material purchases ahead of the long Golden Week holiday in early October. The demand outlook also improved after several Chinese steelmakers pledged to cut production in an effort to reduce steel inventories as profit margins shrink rapidly. Profitability across China’s steel industry deteriorated sharply, weighed down by elevated production costs and weak demand for steel. However, expectations that major coking coal mines will resume operations in September and October following a fatal mine accident in May improved the supply outlook for a key steelmaking ingredient. Meanwhile, industry data showed that iron ore inventories at 35 major Chinese ports increased by 840,000 tons week-on-week to 144.33 million tons as of September 18, reversing an earlier destocking trend.