Iron Ore Slips on Steel Mill Losses

Iron ore futures fell back below CNY 750 per ton, paring recent gains as mounting losses at Chinese steel mills fueled expectations of further production cuts. Steelmakers reported weaker profitability last week as elevated coking coal costs and persistently weak finished steel prices continued to squeeze profit margins. Planned maintenance and output reductions are also expected to weigh on near-term demand for iron ore. On the supply side, industry data showed global iron ore shipments totaled 30.38 million tons last week, down 14% from the previous week, with strong export volumes from both Australia and Brazil. Separately, China launched a new mining investment vehicle, Guangyan International Investment Co., to strengthen the country’s control over overseas mineral resources.

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