23.07.202607:53:00UTC+00Iron Ore Rises After 2-Week Lows

Iron ore futures were trading above CNY 750 per ton, rebounding after hitting a two-week low, as resilient Chinese steel output and strong import demand lent support to prices despite persistent weakness in the property sector. China’s crude steel production averaged 2.79 million tons per day in June, the highest level since March, while iron ore imports rose 6.4% year-on-year to a six-month peak of 112.69 million tons.

Demand for seaborne ore was further bolstered by reduced domestic output and inventory restocking. Port stockpiles fell to 156.6 million tons in the week ended July 17, down from a record 166.9 million tons in mid-March.

Upside for prices, however, remained limited by abundant global supply, the ongoing ramp-up of Guinea’s Simandou project, and continued fragility in China’s property market, where real estate investment in the first half of the year declined 18% and new construction starts dropped 23.4% from a year earlier. Market sentiment also drew support from expectations of additional policy stimulus from Beijing after second-quarter growth came in softer than anticipated.