Global iron ore markets are under renewed pressure as futures prices continue to fall, driven by mounting concerns over China’s faltering economy and weakening demand from its steel and property sectors. Meanwhile, current iron ore prices continue to fluctuate.
According to reports, iron ore futures fell to their lowest levels in a week on Monday, September 1, with the January contract on China’s Dalian Commodity Exchange dropping 2.67% to about US $107.09 (766 yuan) per metric ton. This was the lowest figure seen since August 20 this year. Likewise, the benchmark October iron ore contract on the Singapore Exchange declined by 2.05% to US $101.35 per ton, reaching its lowest rate since August 25.
By Tuesday, September 2, iron ore prices were edging higher, buoyed by expectations of stronger Chinese demand following a recent military parade. This comes even as most steel prices continue to slip amid uncertain market fundamentals.
Despite being the world’s largest consumer of iron ore, China continues to grapple with a slowdown in construction and manufacturing. Though Beijing had made several efforts to curb overcapacity in the steel industry, supply continues to outpace demand. Crude steel output plunged 6.9% year-over-year in June, reaching 86.55 million tons (MT), the lowest in nearly a year.
