Futures prices for iron ore fell below 710 yuan (approximately 100 dollars) per ton, reaching their lowest level in three weeks. This price drop is due to weak market fundamentals affecting prices.
Increase in Iron Ore Exports Last Week
According to industry data, global iron ore exports in the week ending September 13 increased by 1.59 million tons to 35.17 million tons. This indicates sufficient supply in the market, which in turn has impacted prices.
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Impact of High Coke Prices on Steel Producers' Profit Margins
High coke prices continue to pressure the profit margins of steel producers. This situation has led some producers to reduce operations and carry out maintenance. Meanwhile, steel demand in China has significantly weakened in the third quarter due to reduced construction activities.
Data shows that new housing prices in China experienced further declines in August, indicating the ongoing impact of the recession in the country's real estate sector. However, steel mills may have an incentive to replenish iron ore inventories ahead of the long National Day holiday in early October.
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