Iron Ore Tests Highs on Chinese Demand, Technical Signals Align

The SGX TSI Iron Ore 62% Fe CFR China price opened this morning at $98.35 per ton, according to Singapore Exchange data and active chart signals posted at 06:34 UTC.

Market participants kept close attention on volumes, which remained elevated in both physical and futures trading over the last 24 hours.

These numbers tracked with significant activity overnight, especially as Chinese iron ore imports rose by 8% in June and port inventories remained low.

The fundamental backdrop kept traders alert for signs of changing momentum, especially after Chinese steel output posted a notable drop of 9.2% year-on-year in June.

During the day, traders cited thin physical liquidity, but futures prices showed resilience as June shipment data from Brazil and Australia pointed to normalizing deliveries after weather interruptions earlier this year.

As a result, the market weighted supply stability against Chinese demand, especially with China’s property construction still weak but expected to benefit from potential stimulus.

These expectations created upward pressure, while thin margins for Chinese steel mills introduced volatility and encouraged cautious trading.

Iron Ore Breaks Out as Technicals Confirm Uptrend

Technical analysis of the daily chart shows iron ore breaking from a multi-week base. The price settled decisively above key moving averages, including the 20- and 50-period lines, confirming a medium-term trend reversal.

The daily Relative Strength Index marked a reading of 61.2, signaling bullish, but not overbought, conditions. The MACD histogram moved into positive territory, with the signal line crossing above the baseline and confirming upward momentum.

The Bollinger Bands tightened earlier in the week before expanding as volatility returned, and prices tracked closer to the upper band in recent sessions. Trading volume increased as prices approached $99, reinforcing the importance of this resistance area.

Comparing the four-hour and daily timeframes, the short-term chart reveals the price testing upper Bollinger Bands while the RSI hovers near 64. The four-hour MACD line is flattening, suggesting short-term momentum may pause or consolidate.

The longer daily chart signals more potential for further gains if macroeconomic support continues and prices break above the $100–101 resistance.

Global macro factors kept the narrative firmly grounded in real supply and demand. Silver and other metals also traded with strong investor flows, but iron ore retained its own rhythm, responding closely to Chinese economic releases and trading desk flows.

Traders continued to monitor potential policy moves from Beijing, recognizing that any confirmed economic stimulus could impact raw material demand through the second half of the year.

Iron ore’s story today reflects a delicate balance. Merchants, traders, and miners weighed tentative signs of strong Chinese demand against global uncertainty and production headwinds.

The market moved on real numbers, confirmed volumes, and solid technical signals. This firm foundation supported prices near two-month highs, with all eyes turning to Chinese policy, steel margins, and the critical $100 mark as another day in the world’s largest raw materials market began.

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