FX.co ★ Iron Ore Weakens to 3-Week Low

Iron ore futures slipped below CNY 710 per ton, hitting a three-week low as weak market fundamentals continued to pressure prices. Industry data showed that global iron ore shipments rose by 1.59 million tons to 35.17 million tons in the week ended September 13, underscoring abundant supply.

At the same time, elevated coke prices further squeezed steelmakers’ profit margins, prompting some producers to cut output and bring forward maintenance shutdowns. On the demand side, Chinese steel consumption deteriorated further in the third quarter amid an ongoing slowdown in construction activity.

Recent data showed that China’s new home prices fell again in August, extending their decline and underscoring the persistent drag from the country’s protracted property downturn. Even so, steel mills may find some incentive to rebuild iron ore inventories ahead of the extended National Day holidays in early October.