SINGAPORE: Iron ore futures declined on Tuesday as disappointing factory data and persistent property sector woes in top consumer China dampened sentiment.
Warnings of lower prices from Australian authorities and expectations of softer seasonal demand added to the bearish outlook. The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.32% lower at 708.5 yuan ($98.92) a metric ton.
The benchmark August iron ore on the Singapore Exchange lost 0.9% to $93.45 a ton as of 0349 GMT. China’s manufacturing activity shrank for the third straight month in June, though at a slower pace. However, business sentiment remains subdued.
Additionally, continued weakness in China’s property sector and an Australian government report warning of lower prices due to weak outlook further weighed on sentiment, ANZ said.
Moreover, investor sentiment was further tempered after Jiang Wei, secretary general of China Iron and Steel Association, was quoted by China Metallurgical News last week as advising authorities to curb exports of billet.
The call came after year-to-date shipments of the semi-finished steel products surged. China’s steel billet exports more than tripled in the first five months of 2025, customs data showed, prompting the steel association to warn that full-year shipments could exceed 10 million tons.
Other steelmaking ingredients on the DCE fell, with coking coal and coke losing 3.92% and 2.7%, respectively. In the latest version of US President Donald Trump’s tax bill, steelmaking coal has been classified as a critical mineral, allowing it to claim a tax credit that would pay 2.5% of the costs for the fuel.
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