Iron ore futures climbed to around CNY 740 per ton on Monday, rebounding from near one-year lows as China’s state-backed commodity buyer expanded restrictions on Australian miner Fortescue Ltd.
China Mineral Resources Group Ltd. has instructed several domestic steel mills and traders to refrain from purchasing new US dollar-denominated cargoes of Fortescue’s Super Special Fines product, intensifying its dispute with the miner.
The market also drew support from bargain buying following the recent price slump, while easing expectations for US Federal Reserve interest rate hikes this year improved overall risk sentiment.
Iron ore had come under sustained selling pressure in recent weeks due to a seasonal slowdown in Chinese demand and rising seaborne supplies, with inventories at Chinese ports reaching a record 160 million tons last week.