Iron Ore Weakens to 3-Week Low

Iron ore futures fell below CNY 710 per ton, reaching three-week lows as weak market fundamentals continued to weigh on prices. Industry data showed global iron ore shipments increased by 1.59 million tons to 35.17 million tons in the week ended September 13, pointing to ample supply. Elevated coke prices also continued to pressure steelmakers’ profit margins, prompting some producers to scale back operations and undertake maintenance. Chinese steel demand weakened further in the third quarter amid a continued slowdown in construction activity. Data showed China’s new home prices extended their decline in August, highlighting the persistent drag from the country’s prolonged property downturn. Meanwhile, steel mills may see some incentive to replenish iron ore inventories ahead of the extended National Day holidays in early October.