Iron ore prices steadied but are on track for their worst week since March, with little sign of recovery for China’s struggling steel market. Zhang Shaoda, an analyst at China Futures Co., noted that “There is no significant improvement in demand for steel products, so there’s little room for steel mills to resume production.” He added that the downward trend for iron ore is expected to continue. The decline in steel consumption in China is largely attributed to the ongoing real estate slowdown, despite some support from exports and other sectors. This has led to an excess supply in the iron ore market due to reduced steel output.
Iron ore futures in Singapore were unchanged at $91 per ton as of 10:10 a.m. local time, following their lowest close since 2022 on Thursday. Prices have dropped over 10% in the past five sessions.
In China, spot steel prices have continued to fall this week, even as the market enters a traditionally busier construction period. Hot-rolled coil prices, which had briefly recovered in late August, have fallen to their lowest level since 2017, according to Shanghai SteelHome E-Commerce Ltd.
