Iron Ore Prices Slide: China Demand Outlook Dims | Mariner News
Global iron ore prices experienced a notable decline on Thursday, fueled by mounting concerns over weakening demand from China, the world’s largest consumer. Futures contracts on both the Dalian Commodity Exchange (DCE) and the Singapore Exchange saw significant drops, reflecting a cautious market sentiment. This downturn primarily stems from a continued slump in steel consumption across China, overshadowing earlier hopes for economic stimulus from Beijing’s high-level meetings.
Weakening Steel Demand Impacts Markets
Recent data paints a grim picture for the steel sector. Apparent consumption of five major steel products in China has fallen for a third consecutive week, decreasing by 2.8% to approximately 8.4 million tons, according to Mysteel consultancy. This sustained weakness in steel demand directly pressures the iron ore market, as steel production is the primary driver for the key steelmaking ingredient.
China’s Economic Policy Awaits
Investors are closely monitoring Beijing, awaiting crucial policy signals from the upcoming annual Central Economic Work Conference. This event is expected to outline China’s key growth targets and policy priorities for the coming year. While there were some expectations of fresh stimulus following the U.S. Federal Reserve’s interest rate adjustments, the current commodity market sentiment remains dominated by immediate demand concerns, keeping iron ore prices volatile.
