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Highlights
- Iron ore futures climb on tightening supply in China
- (MIN) jumps after resumption of Onslow Iron operations
- (FMG) gains on improved sentiment around steel demand
Australia's iron ore miners drew investor attention on Monday as signs of strengthening Chinese demand provided a tailwind for the sector. While the broader S&P/ASX 200 index barely moved, edging up just 5.7 points to 7,936.9, select iron ore names posted solid gains amid optimism tied to falling Chinese stockpiles and firmer steel activity.
Iron ore futures rose 2.16% as of 4.40pm AEDT, driven by declining inventories in China. A modest uptick in domestic steel production, combined with a fall in iron ore imports, contributed to the tightening supply. The shift comes despite ongoing challenges facing China's steel industry, including 25% tariffs and government-mandated capacity cuts.
Among the sector’s top performers, Mineral Resources (ASX:MIN) surged 6.9% to $24.33. The company confirmed that operations have resumed along its dedicated Onslow Iron haul road following discussions with WorkSafe WA. The update followed a recent truck rollover incident that had sparked a regulatory review. Importantly, (MIN) maintained its guidance for the Onslow Iron project for the 2025 financial year, providing reassurance to investors.
Fortescue (ASX:FMG) also enjoyed a boost, gaining 3.23% to close at $16.30. The rise reflected renewed optimism surrounding the iron ore market, which remains closely tied to China’s infrastructure and manufacturing activity. A dip in iron ore stockpiles often signals increased steel mill consumption, which tends to support prices and sentiment toward miners like (FMG).
Despite these positive moves, the broader materials sector slipped 0.87% for the session. Other sectors followed a mixed path, with industrials down 0.94% and energy sliding 0.19%. On the upside, financials emerged as the day’s strongest performer, rising 1.06% and extending a five-day gain of 2.11%.
The S&P/ASX 200, which tracks the performance of the 200 largest companies listed on the Australian Securities Exchange by market capitalisation, has posted a 1.89% gain over the past five days. However, it remains down 2.72% since the beginning of the year, highlighting the cautious mood still lingering across markets.
With iron ore playing a central role in Australia's resources-driven economy, any shifts in Chinese demand or production can significantly influence sector performance. Monday’s moves suggest that investors remain highly responsive to any signs of momentum in the commodity landscape.
