Iron ore alips due to low demand from China

Iron ore futures fell to around CNY 801 per ton on Thursday, giving back gains from the prior session amid persistent signs of weak demand in top consumer China.

Data indicated that manufacturing and infrastructure investment continued to contract in August, while end-use steel demand dropped sharply in the third quarter, particularly from the property and construction sectors.

Market participants also noted that steel mill margins remain under pressure, prompting production cuts in several regions.

Still, upcoming restocking ahead of the National Day holiday is expected to lend some support to prices, alongside seasonal demand from infrastructure projects.

On the supply side, China’s crude iron ore output rose 8.8% year-on-year in August to 81.63 million metric tons, while shipments from major supplier Brazil also increased in the third quarter, adding to global supply pressures.