Iron ore prices are higher in early Asian trade, supported by resilient near-term demand from Chinese steel mills, although gains may be limited by ample supply and weakening profit margins across the steel sector, say Baocheng Futures analysts in a note. Demand for iron ore remains relatively firm, but deteriorating profitability at steel mills has raised expectations that iron ore demand could soften in the coming months, they add. Overall supply remains elevated, while domestic iron ore production has been broadly stable, they say. High port inventories also continue to weigh on market sentiment. The most actively traded September iron ore contract on the Dalian Commodity Exchange is 0.4% higher at 740 yuan a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)