Market Overview: Iron Ore Retreats Amid Growing Concerns Over Weakening Steel Demand

Iron ore prices declined as signs of weakening steel demand emerged in China. On the Dalian Commodity Exchange (DCE), the January iron ore contract dropped by 0.91% to 759 yuan/ton ($106.58) as of 04:48 GMT. The benchmark November iron ore on the Singapore Exchange fell by 1.08% to $100.7/ton by 04:41 GMT, having earlier dipped below the critical psychological level of $100/ton. According to Mysteel consultancy, the trading volume of construction steel products fell by approximately 8% from the previous day to 122,500 tons. Indicators for steel on the Shanghai Futures Exchange experienced losses, with rebar down by 0.83%, hot-rolled coil by 1.05%, wire rod by 2.2%, and stainless steel by 1.34%. Analysts noted that following a temporary cooling of macro sentiment, speculative demand has significantly decreased, and the recovery in solid demand remains limited.