The price of iron ore futures fell by more than 2.3% during Monday's Asian session, breaking below the $90 mark for the first time, hitting $89.60 per ton, the lowest point since November 2022. This decline is mainly due to reduced demand from major consumer countries and concerns about global economic downturn risks. Year to date, iron ore futures have fallen by more than one-third, with a nearly 10% drop last week alone.
The domestic market's iron ore futures prices are also declining, with the main contract price falling from 684.0 yuan per ton to 662 yuan per ton. Industry experts point out that the steel industry faces severe challenges, especially amid insufficient demand and industrial transformation. Yan Fei, president of the Beijing Metal Materials Circulation Industry Association, stated that the steel industry needs to strengthen internal cooperation to cope with these challenges. Although the overall performance of listed steel companies was not good in the first half of this year, it is expected that steel demand will pick up after the summer, which may provide breathing space for producers. Lange Steel General Manager Ma Li predicts that the contradiction between supply and demand in the steel market is expected to ease, and black series product prices may slightly rebound in the fourth quarter.
