Iron ore futures dropped toward CNY 780 per ton, hitting their lowest level in a month as abundant supply and subdued demand continued to pressure the market.

Inventory levels remain elevated, while shipments from major producers Australia and Brazil have continued to increase, adding to supply-side pressure.

Meanwhile, China’s iron ore imports rose 8% year-on-year in the first four months of the year to 418.6 million tons.

On the demand side, sluggish downstream steel consumption has continued to limit steel mills’ appetite for raw material purchases.

China’s steel output declined 2.8% from a year earlier to 86.63 million tons in April, marking the weakest April production level since 2018.

Steel margins in China also remain under pressure amid persistent weakness in the country’s infrastructure and property construction sectors.
Source: Trading Economics