FXStreet notes that June’s better-than-expected economic data from China are unlikely to allay fears of fading growth momentum. And this could increase downward pressure on iron ore prices. Still, strategists at ANZ Bank do not see a sharp correction in the short-term because the market is still tight.

“Chinese steel demand started the year strongly, with production volumes in January-May up 13% YoY. But momentum has started to turn. Auto sales fell in June. Infrastructure investment has been contracting YoY, and property sector growth has softened in recent months.”

“Demand outside China is expected to offset some of that weakness there. And subdued growth in supply should keep the iron market relatively tight. Prices should trend lower in H2 2021, but the downside will be limited. We maintain our 0–3-month target of $185/t."