Iron Ore Stumbles Under China’s Crisis
Iron ore faces its biggest annual losses since 2015, driven by China’s property crisis and rising global supplies.
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Price Decline
Iron ore is on track to record its largest annual losses since 2015,
as demand weakens due to China’s property crisis and increased shipments from mining companies.
Futures contracts in Singapore traded slightly above $100 per ton, reflecting a 28% drop in 2024.
Despite positive data from China’s manufacturing PMI,
which showed factory activity expanding for the third consecutive month in December, prices saw little benefit.
Property Crisis
Iron ore, the main component in steelmaking, remained one of the worst-performing commodities this year.
The ongoing property crisis in China has weighed heavily on demand, with no clear signs of resolution.
Most of the losses occurred in the first quarter of the year,
with prices dropping to their lowest levels since 2022 in September.
Mixed Performance
In contrast, base metals showed a mixed performance.
The LME Index of six key base metals traded on the London Metal Exchange is on track for a modest annual gain of 5%.
Supply disruptions in copper and zinc partially offset the impact of weak Chinese demand.
Today, zinc rose 0.4% to $3,031.50 per ton, while tin, the best performer this year, declined 0.7% to $29,085 per ton.
Iron ore prices remained flat at $100.45 per ton in Singapore,
while yuan-denominated contracts in Dalian stayed steady,
with slight declines in steel contracts traded in Shanghai.
Iron Ore Stumbles Under China’s Crisis