Iron ore price slides on weak Chinese demand

Iron ore futures declined on Tuesday, as disappointing factory data and persistent property sector woes in top consumer China dampened sentiment.

Warnings of lower prices from Australian authorities and expectations of softer seasonal demand added to the bearish outlook.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended 1.32% lower at 708.5 yuan ($98.92) a metric ton.

The benchmark August iron ore on the Singapore Exchange lost 0.98% to $93.1 a ton, as of 0533 GMT.

China’s manufacturing activity shrank for the third straight month in June, though at a slower pace. However, business sentiment remains subdued.

Continued weakness in China’s property sector and an Australian government report warning of lower prices due to weak outlook further weighed on sentiment, ANZ said.

Moreover, investor sentiment was further tempered after Jiang Wei, secretary general of China Iron and Steel Association, was quoted by China Metallurgical News last week as advising authorities to curb exports of billet.

The call came after year-to-date shipments of the semi-finished steel products surged.

China’s steel billet exports more than tripled in the first five months of 2025, customs data showed, prompting the steel association to warn that full-year shipments could exceed 10 million tons.

Total volume of iron ore dispatched to global destinations from top producers Australia and Brazil have fallen 7.4% from June 23-29, reversing the prior week’s jump, Chinese consultancy Mysteel said.

Other steelmaking ingredients on the DCE fell, with coking coal and coke losing 3.32% and 2.46%, respectively.

Steel benchmarks on the Shanghai Futures Exchange mostly lost ground. Rebar slid 0.2%, wire rod dropped 0.39%, stainless steel lost 0.87%, and hot-rolled coil gained 0.06%.

($1 = 7.1627 Chinese yuan)

(By Lucas Liew; Editing by Sumana Nandy and Rashmi Aich)