Iron Ore Slips on Weakening China Demand
Iron ore futures slipped toward CNY 730 per ton, pulling back from six-week highs amid rising concerns over demand in top consumer China as steel margins continued to deteriorate. Industry data showed that only around 30% of steelmakers were profitable as of September 4, down from 32.5% a week earlier and 61% during the same ...
Iron ore prices declined to CNY 730 per ton, moving away from recent six-week highs. This drop was driven by growing worries over demand from China, the world's biggest consumer, as steel margins continue to deteriorate. According to industry data, only about 30% of steelmakers were profitable as of September 4, a decrease from 32.5% the previous week and a substantial drop from 61% during the same period last year.
Furthermore, China's blast furnace operating rate dropped to 89.08%, a reduction of 0.48 percentage points from the previous week, and average daily pig iron output fell by 5,200 metric tons to 2.4028 million metric tons. China's state-owned iron ore importer, China Mineral Resources Group, has even advised several steelmakers to steer clear of purchasing Rio Tinto Group's key Pilbara Blend ore.
Despite these challenges, South Korean logistics and shipping company HMM has secured a long-term shipping contract with Brazilian miner Vale for iron ore transportation, set to commence in 2030.
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