China's Iron Ore Futures Drop Amid Weakening Demand

Iron ore futures in Dalian took a hit recently as demand weakened and negative factory data emerged from China. The September iron ore on China's Dalian Commodity Exchange fell by 1.42% to 867.5 yuan per metric ton. In contrast, the July iron ore on the Singapore Exchange saw a slight uptick to $115.8 a ton.

Steelmakers noted a drop in daily hot metal output, which resulted in reduced interest in buying iron ore. China's manufacturing activity also saw a decline in May, sparking discussions about potential stimulus measures. Furthermore, coking coal and coke prices on the DCE experienced decreases. Steel benchmarks on the Shanghai Futures Exchange displayed predominantly downward trends.

The recent decline in iron ore futures in Dalian, influenced by weakening demand and negative factory data from China, highlights the interconnected nature of global markets. As steelmakers adjust to lower output and China considers stimulus measures, the iron ore market faces challenges. Keeping an eye on these developments will be crucial for understanding the broader economic landscape.