Iron ore prices in Asia rose as iron ore inventories at Chinese ports steadily declined.

Iron ore for September term on the Dalian Commodity Exchange, China closed up 2.1% to 1,196 CNY ($185.31)/ton, up for the fourth consecutive session. During the session, the price rose to 1,209.5 CNY, the highest level since June 21.
Iron ore for July delivery in Singapore rose 0.8% to $213.35 per tonne.
Imported iron ore at Chinese ports fell for the fourth consecutive week to 123.95 million tons, as of June 25, the lowest level since early October 2020, according to data from consulting firm SteelHome .
Although Chinese steel mills buying iron ore has slowed due to seasonally weak construction and manufacturing activity, iron ore inventories at ports have added to lingering concerns about supply.
Australia and Brazil are the two largest iron ore producers in the world. Brazil’s supply remains stagnant due to restrictions on operations at mines due to safety concerns.
Spot iron ore prices in China have held above $200/ton for the past four weeks, despite the efforts of the Chinese government.
Although iron ore purchases by Chinese steel mills slowed due to a seasonal decline in construction activity, dwindling port stocks have added to concerns about lingering supply.
Australia and Brazil are the world’s largest iron ore producers. Brazilian supply remains limited by operational restrictions on mines due to safety concerns.
Spot iron ore prices in China have remained above $200 per ton for the past four weeks, despite efforts by the Chinese government to cool down hot commodity prices.
Construction rebar on the Shanghai futures exchange rose 1% and hot rolled coil increased 1.1%. Stainless steel fell 0.6%.

Dalian coking coal fell 3.8% and coke lost 4% after three consecutive gains.
China is the world’s largest steel producer. In 2019, the country produced 1.001 million tons of steel, accounting for 53.5% of global production. In 2020, steel production in the world’s most populous country is 1,054 million tons, accounting for 56.5% of global production.
In 2020, Australia has the world’s leading ore production at 900 million tons. The next positions are Brazil (400 million tons), China (340 million tons), India (230 million tons) and Russia (95 million tons).

Source: VITIC/Reuters

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