Iron ore futures declined on Monday, pressured by weak economic indicators from China—the world’s largest consumer—and uncertainty over near-term demand for the key steelmaking material.
The most-active September iron ore contract on China’s Dalian Commodity Exchange dropped 1.03% to 721.5 yuan ($100) per metric ton as of 0258 GMT. Similarly, the benchmark June iron ore contract on the Singapore Exchange fell 0.56% to $99.5 per ton.
China’s industrial output and retail sales growth slowed in April, official data showed, as ongoing trade tensions continue to weigh on the economy. Property investment also contracted 10.3% in the first four months of 2025 compared to a year earlier, worsening from a 9.9% drop in the first quarter.
Hot metal production, an important gauge of iron ore demand, slipped by 8,700 tons month-on-month to 2.45 million tons, largely due to blast furnace maintenance, according to Everbright Futures.
Meanwhile, iron ore stockpiles at Chinese ports ticked up 0.26% week-on-week to 137 million tons as of May 16, based on Steelhome data.
However, production among electric-arc-furnace steel producers in China reversed a two-week decline and increased on May 15, supported by improving profits and rising steel demand, consultancy Mysteel reported.
“The number of profitable blast-furnace steel mills in China continued to rise this week, mainly due to a rebound in finished steel prices,” Mysteel added.
Other steelmaking raw materials also softened, with coking coal and coke falling 2.43% and 2.17%, respectively, on the Dalian exchange. Steel benchmarks on the Shanghai Futures Exchange slipped as well, with rebar down 1.03%, hot-rolled coil falling 1.11%, wire rod nearly 1.5%, and stainless steel easing 0.19%.
Despite the declines, iron ore is positioned for a weekly gain amid mixed signals on demand and production.
