Global iron ore and steel markets started September on a downward trend. Rising inventories and weak economic data in China indicate that demand in the world’s largest steel consumer remains under pressure.
According to Shanghai Gangyin E-Commerce, steel stocks in China have been increasing since mid-August, signaling weaker demand. Iron ore prices fell approximately 2.6% to USD 100.80 per ton. In Singapore, October futures declined 2.05% to USD 101.35 per ton, while contracts on the Dalian Commodity Exchange fell 2.7% to 766 yuan (USD 107.09), marking the lowest level since August 20.
A similar pattern was observed in steel markets. On the Shanghai Futures Exchange, rebar fell 1.89%, hot-rolled coil dropped 1.58%, and wire rod declined 1.54%, while stainless steel rose 1.13%. Prices for coking coal and coke, other key steelmaking inputs, also hit four-week lows, falling 3.29% and 3.54%, respectively.
Analysts indicate that narrowing steel profit margins and production cuts in northern China ahead of the September 3 military parade have added pressure on prices. Official data shows that manufacturing activity in China contracted for the fifth consecutive month in August, while home sales continued to decline despite price cuts. Although a private survey pointed to temporary recovery in some factories, market participants emphasized that the week has started off challenging.
Experts predict that ongoing weakness in the property sector and sluggish manufacturing are likely to continue exerting downward pressure on iron ore and steel prices in the near term.
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