Iron Ore Faces Worst Annual Decline Since 2015 Amid China’s Slowdown
Iron ore is set for its biggest annual drop since 2015, driven by China’s property crisis and increased mining output.
Iron Ore, China, Mining, Property Crisis, Commodities
Singapore: So, it looks like iron ore is really taking a hit this year. It’s on track for its worst annual loss since 2015, all thanks to China’s ongoing property crisis. Demand has dropped, and miners are still pushing out more cargoes, which isn’t helping prices at all.
Right now, futures are hovering just above $100 a ton, which is about 28% lower than last year. Even with some positive signs from China’s manufacturing sector, prices just can’t seem to catch a break. They even lost some ground on the last trading day of the year.
This year has been tough for iron ore, especially with China’s economy struggling. The property crisis has been dragging on, and it really hit demand hard. Most of the price drop happened earlier in the year, but things got even worse in September when prices hit their lowest since 2022.
On a different note, other metals are faring a bit better. The LMEX Index for base metals is looking at a modest gain of 5% this year, even with some weak demand from China. There’s been some supply issues with copper and zinc, which has kept things interesting.
As for prices today, they’re a bit all over the place. Zinc is up slightly, while tin, which has been the star performer this year, is down a bit. Iron ore is pretty steady at $100.45 a ton, but it’s not exactly a thrilling ride.