Iron ore gains on lower shipments, strong China steel exports

• Reuters

• Published On Sep 8, 2025 at 04:30 PM IST

By 0831 GMT, the benchmark October iron ore on the Singapore Exchange was up 0.53 per cent at $105.4 a ton, the highest level since July 24.

“>

Iron ore futures rose for a fifth straight session on Monday, supported by a sharp fall in shipments from a major supplier and resilient steel exports in top consumer China.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange closed daytime trade 0.64 per cent higher at 792 yuan ($111.05) a metric ton.

By 0831 GMT, the benchmark October iron ore on the Singapore Exchange was up 0.53 per cent at $105.4 a ton, the highest level since July 24. Shipments of the key steelmaking ingredient from one of major suppliers Brazil slumped by 5 million tons, or nearly 50 per cent, from the prior week to 5.07 million tons in the first week of September, data from consultancy Mysteel showed. “The sharp fall in Brazilian shipments was mainly because of scheduled berth maintenance at three ports; and Brazil ramped up shipment in the week before; normal shipments are expected to resume from September 9,” Mysteel analysts said in a note.

Additionally, China’s steel exports remained robust in August, partly offseting faltering demand in its domestic market dragged by the protracted property woes.

Many Chinese steelmakers have managed to make money so far this year after suffering losses in the past two years, in part thanks to strong steel exports. Healthy margins encouraged mills to sustain a high operating rate, leading to steady needs for raw materials.

However, a sharper-than-expected fall in hot metal output, a gauge of iron ore demand, raised cation among investors, limiting price gains.

Other steelmaking ingredients, coking coal and coke rose 1.42 per cent and 0.22 per cent, respectively.

Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar ticked up 0.19 per cent, wire rod nudged up 0.09 per cent, hot-rolled coil added 0.96 per cent and stainless steel advanced 0.67 per cent.

Analysts at Citi Research expected a meaningful supply cut in the steel sector in the fourth quarter, a traditional slack demand season.