Iron ore futures traded near CNY 710 per ton, extending their decline as worries about weak Chinese steel demand and high inventories outweighed optimism over potential policy support and a seasonal demand recovery. China’s steel output fell 3.6% year-on-year to 76.93 million tons in July, marking the lowest July production since 2017, while stockpiles remained elevated.
Demand continued to be pressured by a sluggish property sector, with home prices down 3.2% year-on-year and only about one-third of steelmakers operating profitably. Although blast furnace utilization climbed to 82.8% and authorities signaled further stimulus, near-term demand concerns persisted.
Even so, expectations of stronger consumption ahead of the traditional September peak season, along with new policy signals, helped underpin prices. Vice Finance Minister Liao Min indicated that China will introduce measures to bolster domestic demand and support growth, while the NDRC called on local governments to accelerate the rollout of major projects.
