Iron ore falls on weak Chinese demand

Iron ore futures fell below CNY 770 per tonne on Tuesday, hitting a more than one-month low as weaker Chinese demand and steady global supply weighed on sentiment.

BHP Group reported its lowest annual underlying profit in five years at $10.16 billion for the year ended June 30, down 26% from the prior year, citing softer demand from China.

The country accounts for about 75% of global seaborne iron ore imports and produces just over half of the world’s steel.

China’s crude steel output fell to a seven-month low of 79.66 million tons in July, down 4% from June, as construction demand weakened amid extreme heat and heavy rainfall.

Adding to the pressure, new home prices dropped 0.3% in July after a 0.4% decline in June, underscoring persistent weakness in the property sector despite fresh local government incentives.