Iron ore futures advanced toward CNY 790 per ton, reaching a three-week high as rising costs linked to the Middle East conflict, particularly diesel and freight expenses, pushed the iron ore cost curve higher.

Analysts, however, pointed to limited improvement in steel demand this year, even as top consumer China signaled that authorities will systematically address challenges from external shocks and strengthen energy security.

Additionally, the prolonged downturn in China’s construction sector continues to weigh on overall metals demand.

On the supply side, some Chinese steelmakers have been cleared to collect and trade cargoes from BHP Group that had accumulated at ports during an extended standoff.

Those stockpiles were released after China’s state-backed buyer finalized negotiations with the miner, helping ease logistical bottlenecks.
Source: Trading Economics