FX.co ★ Iron Ore Slips on Weak China Demand

Iron ore futures decreased to approximately CNY 801 per ton on Thursday, reversing gains made in the previous session due to ongoing indications of weak demand from China's leading consumer. Data showed a continued decline in manufacturing and infrastructure investments for August, coupled with a significant drop in end-use steel demand in the third quarter, particularly from the property and construction industries. Market analysts observed that steel mill profit margins remain strained, leading to production cuts in several regions. However, the imminent restocking leading up to the National Day holiday is anticipated to provide some price support, alongside seasonal infrastructure project demands. On the supply front, China's crude iron ore production increased by 8.8% year-on-year in August, reaching 81.63 million metric tons, while shipments from key supplier Brazil also rose in the third quarter, contributing to global supply pressures.