2026.08.0306:44:05UTC+00Iron Ore Falls to 15-Month Low

Iron ore futures fell toward CNY 700 per ton in early August, hitting their lowest level since May 2025, as the absence of strong policy support from top consumer China deepened worries about a structural downturn in steel demand. The Politburo recently refrained from unveiling large-scale new stimulus, instead stressing the need to fully implement existing fiscal measures to shore up the slowing economy.

Analysts noted that only narrowly targeted policies—such as increased infrastructure spending and selective industrial support—are likely to offer any meaningful relief to the market. At the same time, Chinese steel mill margins have continued to deteriorate, and hot metal output has extended its decline, reflecting construction activity that has fallen to its lowest level since the onset of the pandemic.

Adding to the pressure, private survey data showed that China’s manufacturing activity slowed to a four‑month low in July, as both output and new orders grew at a weaker pace. This further darkened the outlook for iron ore and steel demand.