Iron ore futures declined toward CNY 700 per ton, trading near a 14-month low amid ongoing concerns about demand in top consumer China. The latest data showed that new yuan loans in China recorded a historic contraction in July, as seasonal factors and weak household credit demand dampened lending activity. This suggests subdued property and infrastructure investment—both critical drivers of steel consumption in China—and therefore points to weaker demand for iron ore.
At the same time, industry data revealed that blast furnace operating rates at Chinese steel mills rose to 82.64% last week, an increase of 0.32 percentage points from the previous week. Separately, reports indicated that China’s state-backed iron ore purchasing entity reached an agreement with Anglo American in April on an annual supply contract for the key steelmaking raw material.
