Iron ore futures rose above CNY 780 per ton, reaching their highest level in more than a week amid signs of resilient demand in top consumer China. Steel mills have also kept inventories relatively low, potentially driving restocking activity ahead of the May Day holiday from May 1 to 5. On the supply side, industry data showed port stockpiles in China declined 0.7% to 164.8 million tons last week, marking a second straight drop. Meanwhile, an ongoing dispute between state-backed China Mineral Resources Group and Australia’s BHP Group has clouded the supply outlook. At the same time, prolonged disruptions in the Strait of Hormuz have weighed on sentiment by curbing metals shipments to the Gulf, a region that was China’s second-largest steel export destination last year, accounting for about 16% of its record-high exports.
