Iron ore futures slipped below CNY 760 per ton, hitting their lowest level in nearly two months after data showed that China’s iron ore imports fell almost 6% in May from April. The decline surprised markets, which had expected an increase amid improved steelmaking margins and higher shipments from major producers. China imported 97.71 million tons of iron ore in May, down from 103.9 million tons in April and short of analysts’ projections, which ranged from 104 million to 110 million tons.
Analysts attributed the drop to more cautious procurement by steel mills, which have restricted purchases to immediate operational needs in anticipation of a seasonally weaker demand period. Demand from China’s steel sector has also cooled earlier than usual this year, as persistent rainfall and the early onset of summer heat have curbed construction activity.
