Iron Ore Stays Strong as Chinese Steel Demand and Technical Momentum Align

The most recent data from SGX and exchange trading platforms reflects a decisive move for the Iron Ore 62% Fe, CFR China (TSI) Index futures.

Prices settled near $99.35 per ton as of July 21, 2025, after sustaining upward momentum through the previous day and night. This level sits close to the psychological $100 mark, a frontier that has previously acted as tough resistance.

Market participants referenced data on price and volume provided directly by official exchange sources. Trading activity showed steady volumes into the new week, with open interest remaining robust.

This signals sustained engagement from both producers and traders looking to hedge or speculate on physical and financial iron ore exposure. Steel mill procurement accelerated as physical inventories at Chinese ports continued to fall.

This fundamental shift supported prices and suggested tighter spot supply, a view corroborated by direct observation of port data. Daily and four-hour technical charts revealed strong bullish signals.

The daily chart traced a clear rally from earlier July levels under $94, with price action recapturing all major moving averages. The 50-day moving average approached a bullish crossover with the 200-day average, often called a golden cross by chartists.

This pattern commonly signals trend strength and attracts interest from systematic trading desks. Momentum indicators also confirmed the move. The MACD remained in firm positive territory, with the histogram showing increasing momentum above the signal line.

The 14-period daily RSI registered above 68, indicating an overbought condition and signaling that buying had dominated but might now approach a pause. This area often sees tactical repositioning by both long and short-side traders.

Bollinger Bands presented a tightly wound upper band, with the price consistently testing the upper edge. This suggests increased volatility and the potential for consolidation or a brief pullback.

Volume analysis confirmed legitimate market strength, as price gains aligned with higher-than-average trading activity. The confluence of these signals—rising prices on rising volume—provided further confirmation that demand, not just speculation, drove the move.

Key resistance hovered near $99.63 and $101.12, directly in line with the upper range from the past quarter. Conservative traders watched these levels closely, with many mills wary of chasing new highs.

The support level formed near $97.83, above which buyers quickly re-emerged after each attempted dip. Across broader macroeconomic factors, Chinese policy signals and infrastructure commitments gave buyers confidence to restock.

The combination of physical restocking, lower port inventories, and optimistic technicals tilted sentiment bullish. Nevertheless, active market makers tempered enthusiasm, noting possible exhaustion and warning of a normalization if steel demand falters.

Official trading statistics, technical indicator data, and physical inventory figures anchor this market narrative. The story behind current conditions remains clear: robust end-use demand, tighter supplies, and bullish charts keep iron ore elevated, but caution prevails as prices test critical resistance levels.

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