Iron ore prices have soared, despite weak steel demand from the real estate sector in China, as Chinese mills continue their production and fill low raw material stocks despite the government's lack of a firm production ceiling.
Iron ore futures, which are actively traded on the Singapore Exchange, rose 13.5%. The September SGX futures contract hit a one-month high of $114.85 per metric ton on August 24 and fell to $112.27 per ton on Monday.
Market analysts state that low iron ore inventories at the mills have also increased prices. Steel mills have reduced their inventory since the second half of 2022 to save cash.