FX.co ★ Iron Ore Falls on Weak China Steel Demand

Iron ore futures dipped below CNY 803 per ton on Tuesday, marking a decline for the second consecutive session. This drop follows a slump in China’s steel demand in the third quarter, which overshadowed earlier boosts from manufacturing-driven consumption. In response to excess output and declining prices, Chinese authorities, the world's leading steel producers, are contemplating measures to curb new capacity, leading to an increase in inventories. However, some demand surfaced due to stockpiling ahead of the upcoming Chinese National Day holiday. On the international front, there were varied outcomes for steelmakers: Japan reported a 3.4% year-on-year decrease in crude steel production, totaling 6.64 million tons in August, while India saw a 14.2% increase in output compared to the same period last year.