Iron ore futures dropped to approximately CNY 705 on Monday, remaining close to an eight-month low. This decline is attributed to disappointing economic figures from China, which have negatively impacted the demand forecast for this essential steelmaking component. In May, China’s export growth did not meet expectations, largely due to a significant reduction in shipments to the United States amid persistent trade tensions. Concurrently, imports decreased more than anticipated, signifying weak domestic demand. Further exacerbating the situation, consumer prices in China saw their fourth consecutive monthly decline, and producer price deflation reached its lowest point in almost two years. Although trade discussions between officials from Beijing and Washington are scheduled to resume in London today, optimism for a significant resolution remains tempered. However, there are tentative signs of improved relations, as evidenced by China reportedly granting temporary licenses for rare earth exports, and US-based Boeing resuming the delivery of commercial jets to China.
The material has been provided by InstaForex Company – www.instaforex.com
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