Iron ore futures fell below CNY 740 per ton, approaching their lowest level in nearly a year, as fresh European Union trade restrictions on steel imports darkened the demand outlook. The European Commission has introduced a new quota system to limit duty-free steel inflows into the bloc, seeking to shield the region’s steel industry and lift capacity utilization.
On the supply side, global availability of iron ore remains ample, while stockpiles at Chinese ports are hovering near historically high levels. At the same time, steel demand from China’s construction sector remains weak, and manufacturing-driven demand continues to soften—a pattern that could persist for several months. Net steel exports have also fallen short of the strong levels seen during the same period last year, further weighing on sentiment.
