Iron ore rangebound on Australian strike, downbeat China data

Iron ore prices were little changed on Monday, as investors weighed the impact on supply after a strike at a major export hub of the key steelmaking ingredient in Australia against downbeat inflation data in top consumer China.

The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) was flat at 716 yuan ($106.13) a metric ton, as of 0323 GMT.

The benchmark September iron ore on the Singapore Exchange was 0.21% higher at $95.25 a ton, as of 0315 GMT.

More workers joined a strike at BHP’s Port Hedland operations in Western Australia on Sunday, in the first major industrial action at the iron ore export hub in a quarter-century.

The hub accounted for 75% of iron-ore exports from the Pilbara region of Western Australia in the year to June.

Investors and traders were watching closely whether both parties could reach an agreement soon, or if an escalation later would hit supply.

But price gains were curbed as China’s producer price inflation eased more than expected in July to its weakest in three months, while consumer inflation also cooled, as global energy prices retreated despite the US-Israel war against Iran.

Coking coal and coke, other steelmaking ingredients, climbed 2.23% and 0.67%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were mostly weaker.

Rebar eased 0.23%, hot-rolled coil nudged down 0.03%, wire rod dipped 0.46% while stainless steel added 0.69%.