The weakening of demand in China, the world’s largest consumer of iron ore, due to seasonal factors put pressure on prices. In addition, the decline in steel producers’ profitability negatively affected the raw materials market.
On the Dalian Commodity Exchange (DCE), the most actively traded iron ore contract fell by 0.57% to 780 yuan per ton. Meanwhile, the benchmark July contract on the Singapore Exchange declined by 1.22% to $103.95 per ton, reaching its lowest level since April 15.
The China Iron and Steel Association (CISA) stated that the steel market entered its seasonal low-demand period earlier than usual this year. The association reported that heavy rainfall that started earlier than expected in some regions, along with prolonged heat waves, slowed outdoor construction activities, weakening steel demand.