Iron ore prices in global markets have reached 690 Chinese Yuan (CNY) per ton, marking the highest level in four weeks. The improvement in profit margins has strengthened market sentiment and contributed to rising prices.
Improvement in Profit Margins
Industry data shows that the average profit margin on imported iron ore has reached 2.36 Chinese Yuan per ton in recent times. Previously, the profit margin had fallen to negative 3.09 Chinese Yuan per ton. This improvement is primarily due to a slight decrease in shipping costs and increased spot prices at Chinese ports.
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Increased Production and Supply Challenges
Steel production margins have also recently improved, reinforcing expectations for increased hot iron production in the coming weeks. However, signs of excessive global supply continue to impact the market. According to published data, the combined production of 16 major mining companies in the first quarter of 2026 has increased by approximately 22.98 million tons compared to last year.
Production Decrease in China
On the demand side, an industry survey indicates that 17 blast furnaces across China have undergone maintenance in October, reducing daily hot iron production by approximately 57,100 tons. Most of these facilities are located in northern China.
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