Iron Ore Falls to 13-Month Low

Iron ore futures dropped toward CNY 720 per ton, reaching their lowest level since June 2025 as mounting losses among Chinese steelmakers weighed on the demand outlook for the key steelmaking ingredient. Industry data showed average losses at steel mills in Tangshan have widened beyond CNY 100 per ton and are expected to keep increasing, with the sector likely to remain under pressure next month. Investors also looked ahead to updates from the Politburo meeting in Beijing, where policymakers are widely expected to refrain from introducing major new stimulus measures and instead focus on implementing existing fiscal policies to support the slowing economy. Meanwhile, data from Australia showed that Western Australia’s Pilbara Ports, the world’s largest iron ore export hub, handled more than 800 million tons of cargo during the 2025-2026 financial year, with iron ore shipments reaching about 759.4 million tons.

Iron ore futures dropped below CNY 740 per ton, sliding toward one-year lows as evidence of abundant global supply continued to pressure prices. Imported iron ore inventories at Chinese ports remained high, while stockpiles at Chinese steel mills climbed 8% last week. Data also showed that Western Australia’s Pilbara Ports, the world’s largest iron ore export hub, handled more than 800 million tons of cargo during the 2025-2026 financial year, with iron ore shipments totaling about 759.4 million tons. That surpassed the previous record of 775.7 million tons set in the 2024-2025 financial year. Meanwhile, Port Hedland handled 580.4 million tons of cargo over the same period, while Dampier processed 178.3 million tons. On the demand side, investors are awaiting updates from the Politburo meeting in Beijing for potential stimulus measures that could provide support to the Chinese economy, which is the world's top iron ore consumer.

Iron ore futures slipped below CNY 750 per ton, resuming their decline as seasonally soft demand and weakening steel mill margins in top consumer China continued to weigh on the market. A number of Chinese steelmakers began maintenance work on production equipment, curbing demand for raw materials. Industry data also showed average daily hot metal output, a key indicator of iron ore consumption, fell for a third consecutive week to 2.38 million tons as of July 23, the lowest level since April 3. Meanwhile, investors are awaiting the upcoming Politburo meeting for potential stimulus measures that could provide support to the economy. Separately, Fortescue Executive Chairman Andrew Forrest called on China and Australia to engage in fair negotiations as the miner faces growing pressure from Beijing’s state-backed iron ore buyer over prolonged supply talks.