Iron ore futures climbed across all benchmarks on Wednesday as shipments from top exporters Australia and Brazil dropped, while an increase in hot metal output buoyed investor sentiment.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.69% higher at 722.5 yuan ($100.81) a metric ton.

The benchmark August iron ore on the Singapore Exchange was up 1.82% at $94.9 a ton as of 0806 GMT.

On the supply front, iron ore shipments from top producers Australia and Brazil have declined, and global iron ore shipments decreased slightly, broker Everbright Futures said in a note.

Hot metal output, a gauge of iron ore demand, continued to increase month-on-month, Everbright said.

China’s factory activity returned to expansion in June, with official PMI and Caixin PMI data showing the highest output reading since November 2024.

Still, resale home prices in China fell at a faster pace in June, while growth in new home prices slowed, underscoring persistent weakness in the country’s property market.

Meanwhile, analysts at ANZ noted that a proposal by the China Iron & Steel Association to restrict exports of certain steel products could keep more supply within the country, potentially pressuring prices.

Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 3.18% and 3.15%, respectively.

Steel benchmarks on the Shanghai Futures Exchange climbed. Rebar RBF1! rose 2.61%, hot-rolled coil EHR1! gained 2.24%, wire rod (SWRcv1) inched 1.03% higher and stainless steel HRC1! was up 1.08%.
Source: Reuters