Iron ore futures climbed to around CNY 707.5 per tonne on Friday, reaching a two-week high amid signs of resilient demand in China, the world’s top steel producer. Industry data showed a slight increase in blast furnace operating rates to nearly 84%, while hot metal output—a key indicator of iron ore demand—rose to over 2.4 million tons this week. However, adverse weather conditions have disrupted construction and industrial activity across China, with heavy rains impacting southern regions and extreme heat slowing operations in the north. Adding to the complex supply-demand picture, China’s steel output dropped 6.9% in May, marking the first monthly decline in several months as authorities step up efforts to curb overcapacity in the sector.
