Iron Ore Falls to 15-Month Low

Iron ore futures slipped toward CNY 700 per ton in early August, falling to their lowest level since May 2025 as the lack of forceful policy support in top consumer China added to concerns over a structural downturn in steel demand. The Politburo recently stopped short of announcing major new stimulus measures, instead emphasizing the implementation of existing fiscal policies to support the slowing economy. Analysts said only targeted measures focused on infrastructure spending and selective industrial support are likely to provide meaningful relief for the market. Chinese steel margins have also continued to weaken, while hot metal output extended its decline as construction activity fell to its lowest level since the start of the pandemic. Meanwhile, private data showed China’s manufacturing activity slowed to a four-month low in July as output and new orders expanded at a weaker pace, further weighing on the demand outlook.

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