Iron Ore Drops Ahead of China Holiday

2025-09-29 06:44 By Jam Kaimo Samonte 1 min. read

Iron ore futures fell to CNY 780.5 per tonne at the end of September, hitting a four-week low, as steel mills slowed restocking ahead of China’s National Day holiday and braced for weaker activity.

Rising port inventories and stronger supply from Australia also weighed on prices.

Last week, iron ore retreated after reports that the European Commission plans to impose tariffs of 25%–50% on Chinese steel imports and related products in the coming weeks.

The move seeks to curb inflows and protect domestic producers as global overcapacity continues to erode margins, while Western economies aim to safeguard strategic manufacturing capacity.

At the same time, China is preparing to limit new capacity to address oversupply and depressed prices, with authorities looking to curb production by about 2%-3% nationwide this year.

Meanwhile, China directed steelmakers and traders to temporarily halt purchases of dollar-denominated seaborne iron ore cargoes from BHP as a pricing dispute escalated.



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