FX.co ★ Iron Ore Falls on Demand Worries

Iron ore futures fell toward CNY 700 per ton, nearing a 14-month low, as weak profitability among Chinese steelmakers continued to limit the prospects for a meaningful rebound in ore demand. Recent data showed that China imported 108.086 million tons of iron ore and concentrates in July, a decline of 4.09% from June but still 3.5% higher than a year earlier. At the same time, slower consumer and producer inflation in China last month underscored ongoing softness in domestic demand. On the supply side, however, tighter shipments have provided some support to prices. Industry data indicated that global iron ore shipments decreased by 1.38 million tons in the week through August 9 to about 32 million tons, while arrivals at Chinese ports fell by 13.1 million tons to 18.9 million tons.