FX.co ★ Iron Ore Slides for Fourth Straight Session

Iron ore futures slipped to around CNY 710 per ton, extending losses for a fourth straight session as deteriorating steel mill profitability continued to pressure demand for the key steelmaking raw material.

Industry data showed that the share of profitable steel mills in China plunged to 7.79% in the latest week, with persistently elevated coke prices eroding margins. Domestic steel demand weakened further in the third quarter amid a continued slowdown in construction activity.

Overseas steel demand remained relatively resilient but showed signs of only a delayed recovery. Iron ore inventories at major Chinese ports fell nearly 1% last week to 151.29 million metric tons, offering some support to prices. At the same time, there were indications of restocking: imported iron ore inventories held by steel mills rose by 1.41 million metric tons to 90.44 million metric tons over the same period.