Iron Ore Sinks to Two-Month Low
2026-06-17 06:52
By
Jam Kaimo Samonte
1 min. read
Iron ore futures dropped toward CNY 750 per ton, reaching their lowest level in two months as ample supply and weakening demand in China continued to weigh on the market.
Crude steel production in China has remained under pressure amid a prolonged downturn in the property sector, with May output declining 2.7% year-on-year to 84.35 million tons.
Broader economic indicators also disappointed, with fixed-asset investment and consumer spending retreating to levels not seen since the pandemic period.
On the supply side, Guinea’s Simandou mine continued to ramp up production, with output rising to 2.2 million tons in May from 1.3 million tons in April.
Meanwhile, iron ore inventories at Chinese ports climbed to record highs as demand from steelmakers softened.
Adding to bearish sentiment, China’s iron ore imports fell nearly 6% in May from the previous month, defying expectations for an increase, as mills limited purchases to immediate needs ahead of a seasonally weaker demand period.