FX.co ★ Iron Ore Drops to 1-Month Low

Iron ore futures slipped toward CNY 780 per ton, their lowest level in a month, as abundant supply and muted demand continued to weigh on the market. Inventories remain high, while shipments from major exporters Australia and Brazil have been rising, intensifying supply-side pressures. At the same time, China’s iron ore imports increased 8% year-on-year in the first four months of the year to 418.6 million tons. On the demand side, weak downstream steel consumption has kept steel mills cautious about raw material purchases. China’s crude steel output fell 2.8% from a year earlier to 86.63 million tons in April, the lowest April production since 2018. Steel margins in China also remain squeezed, reflecting ongoing softness in the country’s infrastructure and property construction sectors.