Iron ore futures declined toward CNY 700 per ton, nearing a 14-month low amid persistent weakness in steel demand and ample global supply. Chinese steelmakers continue to struggle with shrinking profit margins and a prolonged slump in the property sector, both of which are curbing demand for the key steelmaking raw material. Industry data showed that China’s daily crude steel output in July fell 11% from the previous month to 2.48 million tons, while daily hot metal production slipped 2.2% to 2.2 million tons.
In contrast, Australian mining giant Fortescue reported higher annual profit, buoyed by increased iron ore shipments and stronger realized prices. The company achieved a record annual shipment volume of 201.3 million metric tons of iron ore. Elsewhere, authorities in Singapore said they had received reports related to Radiant World, one of the world’s largest iron ore traders, although no further details were disclosed.