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2025.09.0106:54:49UTC+00Iron Ore Falls on Rising Steel Inventories

Iron ore futures experienced a decline, reaching approximately CNY 762 per tonne on Monday, which represents a seven-week low. This downturn is attributed to increasing steel inventories and diminished profit margins, which have negatively impacted demand in China. Since mid-August, inventories of primary steel products have been accumulating, signifying a downturn in consumption amidst ongoing challenges in the property sector. The weakened demand for steel has further pressured profit margins, consequently reducing the demand for raw materials. Concurrently, steel mills in Tangshan, China's leading steel production hub, have implemented production restrictions to enhance air quality prior to a military parade scheduled for September 3, thus restricting iron ore consumption. Contributing to the negative sentiment, official data released over the weekend indicated that China's manufacturing sector contracted for the fifth consecutive month in August, highlighting the restrained domestic demand.

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