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Iron ore drops to one-year low in Singapore on China demand slump
Iron ore has fallen as China steel demand stays soft while supply rises, deepening expectations for a surplus.
Iron ore futures in Singapore hit their lowest intraday level in about a year as bearish fundamentals weighed on prices, OilPrice reported. The decline reflected ongoing weakness in Chinese steel demand alongside increasing supply.
The article cited a China construction slump and weakening mill margins as drivers of soft steel demand. With supply continuing to expand, the market is increasingly focused on the risk of a growing surplus.
OilPrice also pointed to additional uncertainty involving physical trader Radiant World, saying Vitol Group and Cargill Inc. have stopped dealing with the privately held company amid concerns over fake invoices, according to Bloomberg News. Intesa Sanpaolo SpA and Jefferies Financial Group Inc.’s Point Bonita fund were also reviewing exposure to Radiant World, which said the developments are categorically untrue.
The piece added that analyst Allsop questioned whether iron ore could trade above $100 per tonne in 2027, saying the fundamentals are deteriorating as supply rises and demand remains soft. OilPrice said the forecast is for iron ore to average around $100 per tonne in 2026 and move with diesel and freight rates, which are expected to moderate if broader conditions normalise.