MONTHLY: China iron ore prices to decline as supply surplus widens

Global iron ore shipments are entering their traditional peak season this month, while China's steel consumption is expected to gradually weaken due to the summer lull, weighing on iron ore demand. As a result, a potential supply glut, combined with lower freight rates driven by a likely retreat in oil prices, could depress China's imported iron ore prices in June, Mysteel predicts in its latest monthly report on the commodity.

Although iron ore prices pulled back in the second half of May after a strong increase earlier in the month, the monthly average ended higher overall. For example, Mysteel assessed the SEADEX 62% Australian Fines at an average of $110.2/dmt CFR Qingdao in May, up $1.4/dmt from April's average