Iron ore futures fell toward CNY 750 per ton, hitting their lowest level in two months as abundant supply and weakening demand in China continued to pressure prices. Crude steel output in China has remained subdued amid the prolonged slump in the property sector, with May production down 2.7% year-on-year to 84.35 million tons. Broader economic data also underwhelmed, as fixed-asset investment and consumer spending slid back to levels last seen during the pandemic.
On the supply side, Guinea’s Simandou mine continued to increase shipments, with output rising to 2.2 million tons in May from 1.3 million tons in April. At the same time, iron ore inventories at Chinese ports climbed to record highs as demand from steelmakers weakened. Further dampening sentiment, China’s iron ore imports fell by nearly 6% in May from the previous month—contrary to expectations for a rise—as mills restricted purchases to near-term requirements ahead of a seasonally slower demand period.