Iron ore rises on higher freight costs, looming restrictions on Fortescue cargoes

Fortescue

14/07/2026 05:34

By Emily Ou Yong

    SINGAPORE, July 14 (Reuters) - Iron ore futures rose on Tuesday, as an escalation in the Strait of Hormuz standoff added further support by lifting freight costs and as looming restrictions on some Fortescue FMG.AX portside cargoes tightened availability in the spot market.
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 closed morning trade 1.2% higher at 756 yuan ($111.44) per metric ton, its highest since June 17, when it closed at 758.5 yuan.
The benchmark August iron ore SZZFQ6 on the Singapore Exchange was 1.25% higher at $99.7 per ton, touching its highest since July 2 at $100.1 per ton.
The state-backed China Mineral Resources Group (CMRG) verbally notified some mills that from July 15, they must not take delivery of portside cargoes of Fortescue's Super Special Fines and Fortune Fines, both of which are lower-grade iron ore products.
The Hormuz closure has made shipping and input costs more expensive across the board, raising seaborne iron ore costs, a Singapore-based trader said.
Oil prices rose 2% on Tuesday to their highest in four weeks, as the U.S. reimposed its naval blockade of Iran while the two countries stepped up attacks in the Strait of Hormuz, heightening uncertainty about energy flows. O/R
China's iron ore imports rose 15% month-on-month in June to 112.69 million tons, customs data showed on Tuesday.
Other steelmaking ingredients on the DCE were mixed, with coking coal DJMcv1 up 0.08% and coke DCJcv1 down 0.96%.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar SRBcv1 traded flat, hot-rolled coil SHHCcv1 rose 0.12% and stainless steel SHSScv1 advanced 1.78%. Wire rod SWRcv1 fell 1.24%.
     
($1 = 6.7839 Chinese yuan)

(Reporting by Emily Ou Yong; Editing by Rashmi Aich)
((emily.ouyong@thomsonreuters.com;))