FX.co ★ Iron Ore Slips on Demand Concerns

Iron ore futures fell back below CNY 750 per ton, extending their decline as seasonally weaker demand and shrinking profit margins at Chinese steel mills continued to pressure prices. Several Chinese steelmakers have started maintenance on production facilities, reducing their need for raw materials. Industry data also showed that average daily hot metal output — a key gauge of iron ore consumption — dropped for a third straight week to 2.38 million tons as of July 23, the lowest level since April 3. At the same time, investors are closely watching the upcoming Politburo meeting for potential stimulus measures that could bolster the economy. In a separate development, Fortescue Executive Chairman Andrew Forrest urged China and Australia to pursue fair negotiations, as the miner faces mounting pressure from Beijing’s state-backed iron ore buyer amid protracted supply talks.