Iron Ore Approaches 7-Week Low
Iron ore futures in China slipped to around CNY 705 per ton on Monday, nearing seven-week lows as ample global supply and weakening steel demand pressured the market. Industry data showed iron ore inventories at major Chinese ports increased last week, while overseas shipments have recovered to elevated seasonal levels, easing previous supply-side disruptions. Meanwhile, ...
Iron ore prices in China have plummeted to a seven-week low of approximately CNY 705 per ton, as abundant global supply and dwindling steel demand take their toll on the market. Industry data revealed a spike in iron ore inventories at major Chinese ports over the past week, while overseas shipments have rebounded to robust seasonal levels, mitigating prior supply-side issues.
Nevertheless, Chinese steel mills' profitability continues to slip, with daily hot metal output also declining. The China Iron and Steel Association has called upon mills to curb production and deplete inventories to safeguard margins and curb overabundant supply.
According to the World Steel Association, global crude steel production declined by 1.2% in August 2023, falling to 144.2 million tons compared to the previous year. Simultaneously, industrial profits in China waned in August as weak domestic demand overshadowed robust performance in high-tech and AI-driven manufacturing, further dimming the overall demand outlook.
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