China’s Steel Production Slumps in May, Pressuring Iron Ore Prices

China’s Steel Output Declines, Iron Ore Prices React

China's steel production is losing momentum, sending ripples through global iron ore markets. Futures prices for iron ore dropped as concerns grow over weakening demand from the world’s largest steelmaker.

On the Dalian Commodity Exchange, iron ore futures fell by 1% to 721.5 yuan per ton. In Singapore, prices also dipped, down 0.56% to $99.50 per ton. This slide reflects investor unease as China’s construction and manufacturing sectors continue to cool.

The slowdown is driven by a 10.3% drop in property investment and lackluster industrial output. Rising iron ore stockpiles at Chinese ports signal lower demand, while coking coal and coke prices are also falling, suggesting broader market softness.

Despite the decline, some steel mills are maintaining or even boosting production, supported by improved profit margins from falling input costs. This has created a mixed outlook—while the broader trend points to contraction, short-term profitability may sustain select operations.