Iron ore prices posted their lowest weekly performance since March due to the ongoing troubles in China's steel market. The lack of signs of recovery paints a bad picture for the sector.
The decline in steel consumption caused by China's protracted real estate crisis has led to lower demand for steel products. According to market experts, weak demand is expected to continue to push iron ore prices down.
Although other sectors and exports have mitigated the impact to some extent, production cuts in the steel sector have left the iron ore market oversupplied. The situation worsened as Chinese spot steel prices continued to fall this week, highlighting the market's continued weakness despite the approach of a typically busy construction season.
Singapore iron ore futures fell to almost USD 90 on Thursday, their lowest close since 2022. Meanwhile, the HRC price, which showed some recovery in August, also fell to its lowest level since 2017.
Comments
No comment yet.