Iron ore prices fell again on Wednesday after data revealed Chinese crude steel production slumped for a second consecutive month in July.
Figures from the country's National Bureau of Statistics showed China's crude steel output plummeting 9% to 82.9 million tonnes in July, compared to the same month in 2023 and June of this year. This represented a 10 million tonne decline from May's peak of 92.9 million tonnes and marked the lowest monthly total since February.
The decline brought total production for the first seven months of the year to 613.7 million tonnes, a 2.2% decrease from the same period last year and double the 1.1% dip in the first six months.
Analysts reported a daily production fall of 12.4% from June, averaging 2.68 million tonnes, the lowest level since the start of the year. They attributed this to many Chinese steel producers undergoing maintenance on their steelmaking facilities or reducing production due to weakening demand and prices, particularly for rebar, the primary steel product used in building and construction.
News of the July output slide caused iron ore prices to drop approximately 3% to just over US$93 a tonne for 62% Fe fines. This is the lowest price of the year and a 7% decline from last Friday's closing price of US$101.09 a tonne.
