Iron Ore Approaches 1-Year Low
2026-09-22 16:46
By
Andre Joaquim
1 min. read
Iron ore futures in China dropped below CNY 710 per tonne, approaching the one-year low of CNY 695 reached in early August, on weak demand and as crisis at the major trader has halted a significant source of physical iron ore liquidity.
Iron ore trading giant Radiant World disclosed $870 million in outstanding liabilities to six different trade financing firms, detailing creditors’ exposure to the company, which has been accused of fabricating invoices to secure funding.
The outstanding amounts have yet to be repaid.
Beyond disrupting a segment of the trading market, the developments are also expected to tighten funding rules for other traders, having already contributed to the sharp decline in ore futures in late July.
Meanwhile, weakening demand from China’s construction and manufacturing sectors has also dented ferrous metal buying.
New yuan loans were sharply below historical averages in August, while the construction PMI fell to a record low.