Steel Market Update

Advisory Bazaar Info Services

Iron ore prices remain volatile and are likely to face further downside pressure due to weak market fundamentals.

Global iron ore shipments continue to remain elevated, leading to rising inventories at major ports. At the same time, analysts at Everbright Futures have highlighted a decline in hot metal production for several consecutive weeks, reflecting weaker steel production activity.

Lower profit margins at steel mills have prompted producers to adopt a cautious approach toward raw material procurement. Meanwhile, increasing supply and subdued demand have resulted in higher port inventories, weakening the cost support for iron ore prices.

On the Dalian Commodity Exchange (DCE), the most-active September iron ore futures contract was trading nearly unchanged at CNY 702.5 per tonne.

Outlook

Iron ore prices are expected to remain under pressure in the near term as rising supply, increasing port inventories, and weak demand continue to weigh on market sentiment. However, any improvement in Chinese steel demand, production activity, or supportive policy measures could provide price support.