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, profitability at Chinese steel mills declined again last week, while average daily hot metal output also fell. The China Iron and Steel Association has urged mills to reduce production and draw down inventories to protect margins and limit excess supply. Separately, World Steel Association data showed global crude steel production fell 1.2% to 144.2 million tons in August from a year earlier. Elsewhere, industrial profits in China slowed in August as weak domestic demand outweighed strength in high-tech and AI-related manufacturing, further weighing on the overall demand outlook.