FX.co ★ Iron Ore Falls on Weak Chinese Demand

Iron ore futures dipped below CNY 770 per tonne on Tuesday, marking their lowest point in over a month due to subdued demand from China and a stable global supply. BHP Group reported its annual underlying profit at $10.16 billion for the year ending June 30, representing a 26% decrease from the previous year, largely attributed to weaker demand from China. China consumes approximately 75% of the world's seaborne iron ore imports and is responsible for producing just over half of the global steel output. In July, China's crude steel production dropped to a seven-month low of 79.66 million tons, a 4% decrease from June, as construction demand waned amidst extreme heat and heavy rainfall. Further exacerbating the situation, new home prices fell by 0.3% in July following a 0.4% decline in June, highlighting ongoing challenges in the property sector despite recent supportive measures from local governments.