INSUBCONTINENT EXCLUSIVE:
Iron ore prices for 62% Fe fines delivered to China surged in the last 24 hours, as shown by the SGX TSI Index Futures and official market
charts.The market opened July 3 with the futures contract at $96.35 per ton, reflecting a sharp rally that began late on July 2 and
This move followed a period of subdued trading and marked the strongest upturn since May.Market participants responded to confirmed supply
adjustments from major producers
Vale reduced its 2025 agglomerates output forecast, citing weak demand and oversupply.This decision cut seaborne pellet supply by 6 percent,
tightening the market for high-grade iron ore
Samarco, a joint venture between Vale and BHP, increased output, but the net effect remained a reduction in available high-grade
supply.These changes shifted the balance in favor of sellers, as Chinese steel mills continued to favor lower-grade fines due to compressed
Technical analysis of the daily chart reveals a decisive bullish reversal.Iron Ore Prices Surge as Supply Adjustments and Technical Breakout
(Photo Internet reproduction)The price broke above the 20-day and 50-day moving averages, signaling a change in trend
Bollinger Bands expanded, indicating increased volatility and the potential for a sustained move.The MACD histogram turned positive,
confirming the momentum shift
The Relative Strength Index (RSI) climbed above 54, showing renewed buying interest but not yet reaching overbought territory.The 4-hour
chart highlights the intensity of the overnight rally
The price moved rapidly from $94.75 to $96.35, testing the 200-period moving average
The RSI spiked to 72, entering overbought territory and suggesting a possible short-term pause or consolidation.The MACD and volume both
confirmed strong upward momentum, with a clear breakout from previous resistance levels
Trading volumes surged during the rally, confirming strong participation from both physical and futures market players.No major inflows or
outflows occurred in iron ore-related exchange-traded funds, indicating that the move was driven by active market participants rather than
passive investment flows.Macroeconomic factors also played a role
Chinese policy signals, including speculation about steel output cuts and ongoing property sector reforms, added to market volatility.High
port stocks in China and steady supply from Australia and Brazil provided a backdrop of caution, but the immediate impact of supply-side
The sharp price increase resulted from a combination of supply reductions, technical breakout, and improved sentiment.The short-term outlook
suggests possible consolidation due to overbought conditions, while the medium-term view remains constructive if supply discipline and
supportive policy persist
High port stocks and weak construction demand in China could limit further gains if policy support fades.
