Iron ore futures fell below CNY 740 per ton on Wednesday, hitting a two-week low as rising global supply met a weakening demand outlook in top consumer China. Brazilian miner Vale posted its strongest second-quarter production since 2018, with iron ore output increasing 0.8% year-on-year and beating market expectations. In China, elevated inventories and abundant physical supply added further downward pressure on prices.
On the demand side, prolonged rainfall in southern China and extreme heat in northern regions continued to disrupt construction activity, curbing steel consumption. Industry data showed blast furnace capacity utilization at surveyed steel mills slipping below 90% last week, while the share of profitable mills fell to around 37%.
