Iron Ore Surges as Chinese Demand Fuels a 2.67% Price Rally
Iron ore prices for 62% Fe fines delivered to China, as tracked by the SGX TSI Index, surged by 2.67% in the last 24 hours, rising from $95.35 to $97.90 per ton.
This sharp rally, confirmed by official exchange data, signals renewed market momentum as Chinese demand remains robust. Chinese steel mills continued to buy iron ore despite the seasonal slowdown.
In the physical market, Shandong and Tangshan PB fines traded between 745 and 763 yuan per ton, each region posting day-over-day gains of 20 to 30 yuan per ton.
These price increases highlight active procurement by steel producers, even as some buyers showed caution in response to the rapid price rise. Macroeconomic factors played a central role in this advance.
Chinese steel demand held steady, supported by ongoing infrastructure and construction work. Port inventories dropped faster than expected, indicating that mills drew down stocks to sustain production.
This inventory drawdown, combined with temporary reductions in seaborne shipments, contributed to a tighter spot market and reinforced the upward price movement. Policy expectations further fueled the rally.
The Chinese government signaled support for the steel sector ahead of key July meetings, which encouraged speculative interest and underpinned prices. However, steel mills did not rush to buy, keeping transaction volumes within normal ranges.
Technical analysis of the daily chart shows a strong bullish breakout. Prices broke above the 50-day and 100-day moving averages. The Relative Strength Index (RSI) reached 61.34, reflecting positive momentum but not yet overbought conditions.
The Moving Average Convergence Divergence (MACD) indicator showed a bullish crossover, with the histogram rising above zero. Bollinger Bands expanded, with price touching the upper band, signaling higher volatility and a continuation of the upward trend.
Volume analysis confirmed the rally, with increased trading activity supporting the price gains. The four-hour chart showed prices approaching short-term resistance, with the RSI at 66.57, suggesting the market neared overbought territory.
The MACD on this timeframe remained positive, but the histogram hinted at a potential slowdown in momentum. Fundamentally, strong demand and lower inventories provided a floor for prices.
No major supply disruptions occurred, but logistical adjustments and shipping delays added to the bullish tone. Steel production in China stayed high, and cost pressures for iron ore concentrate in Tangshan deterred aggressive selling.
In summary, iron ore prices climbed 2.67% over the last 24 hours, driven by resilient Chinese demand, technical strength, and positive policy expectations.
The market’s upward move was clear, with both technical and fundamental factors confirming the strength of the rally.
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| GOLD | 4,095 | -1.24% | +20.66% | 4,147 | 4,144 | 4,075 | 44,638 |
| SILVER | 59.15 | -1.46% | +50.58% | 60.02 | 60.36 | 58.91 | 8,704 |
| BRENT | 92.57 | -1.59% | +35.12% | 94.07 | 86.64 | 85.01 | 16,641 |
| WTI | 89.94 | +3.58% | +37.84% | 86.83 | 90.35 | 87.32 | 87,497 |
| COPPER | 6.46 | +0.19% | +11.54% | 6.45 | 6.54 | 6.44 | 8,730 |
| LITHIUM | 69.00 | -0.12% | +58.73% | 69.08 | 69.65 | 68.95 | 261,058 |
| IRON ORE | 161.91 | — | +64.76% | 161.91 | 161.91 | 1 | |
| SOY | 1,241 | +0.61% | +23.34% | 1,233 | 1,245 | 1,236 | 20,057 |
| CORN | 487.00 | +5.41% | +22.21% | 462.00 | 487.50 | 483.00 | 35,174 |
| WHEAT | 704.50 | -0.18% | +30.34% | 705.75 | 710.00 | 698.25 | 14,432 |
| COFFEE | 312.65 | -1.26% | +3.75% | 316.65 | 321.30 | 312.55 | 1,227 |
| SUGAR | 14.82 | +0.54% | -8.74% | 14.74 | 14.86 | 14.73 | 7,097 |
| COCOA | 5,339 | +0.21% | -36.74% | 5,328 | 5,540 | 5,333 | 1,823 |
| ORANGE JUICE | 147.50 | +2.57% | -56.17% | 143.80 | 150.50 | 140.55 | — |
| COTTON | 81.64 | +2.22% | +22.55% | 79.87 | 81.75 | 79.75 | 3,651 |
| BEEF | 219.20 | -3.30% | -3.45% | 226.68 | 222.55 | 218.83 | 22,518 |
| CATTLE | 336.15 | -3.83% | +1.40% | 349.55 | 344.00 | 335.00 | 11,864 |
| USD/BRL | 5.06 | +0.05% | -9.11% | 5.05 | 5.06 | 5.04 | — |
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