21.08.202506:38:52UTC+00Iron Ore Rises on Easing Demand Concerns

Iron ore futures have risen above 774 CNY per tonne as of Thursday, marking a second consecutive session of gains primarily due to less severe production cuts in anticipation of China's military parade. These measures have turned out to be less stringent than originally feared, reducing concerns about demand. Steel manufacturers in Tangshan are slated to decrease sintering production by 30% starting August 25, and cut blast furnace output by 40% beginning August 31—falling short of earlier projections of a complete shutdown. Additionally, the shorter-than-expected duration of these restrictions implies that the effects on iron ore consumption may be less significant than initially thought. Meanwhile, on the corporate front, BHP Group has announced its weakest annual underlying profit in five years, reporting $10.16 billion for the fiscal year ending June 30—a 26% decline from the previous year. This downturn is attributed to diminished demand from China, which is responsible for approximately 75% of global seaborne iron ore imports and produces just over half of the world's steel.