Iron Ore Slides on Weak Steel Mill Profits
Iron ore futures fell toward CNY 670 per ton on Monday, hovering near four-year lows as weakening profitability among Chinese steel mills dampened demand prospects. Industry data showed that the blast furnace operating rate at 247 Chinese steel mills stood at 80% last week, down 4.3% from the same period a year earlier. Supply conditions ...
Iron ore prices tumbled to a four-year low on Monday, hovering around CNY 670 per ton, as Chinese steel mills' profitability declined, according to industry data. The blast furnace operating rate at 247 Chinese steel mills decreased to 80% last week, marking a 4.3% decline from the same period a year ago. The ample supply conditions were also supported by increased iron ore arrivals at Chinese ports and rising global shipments.
China's state-backed iron ore buyer recently struck a new supply agreement with Rio Tinto, alleviating concerns over raw material availability. The China Mineral Resources Group reportedly communicated the deal to several steel mills verbally last week, though the exact terms remained undisclosed. Previously, the state-backed buyer instructed certain steelmakers to freeze negotiations with Rio Tinto regarding shipments scheduled to begin in September.
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