Iron ore drops ahead of China holiday

Iron ore futures fell to around CNY 782 per ton on Monday, a three-week low, as steel mills slowed restocking ahead of China’s National Day holiday and braced for weaker activity.

Rising port inventories and stronger supply from Australia also weighed on prices.

Last week, iron ore retreated after reports that the European Commission plans to impose tariffs of 25%–50% on Chinese steel imports and related products in the coming weeks.

The move seeks to curb inflows and protect domestic producers as global overcapacity continues to erode margins, while Western economies aim to safeguard strategic manufacturing capacity.

At the same time, China is preparing to limit new capacity to address oversupply and depressed prices.