Iron ore futures fell toward CNY 670 per ton on Monday, hovering near four-year lows as weakening profitability among Chinese steel mills dampened demand prospects.
Industry data showed that the blast furnace operating rate at 247 Chinese steel mills stood at 80% last week, down 4.3% from the same period a year earlier.
Supply conditions also remain ample, supported by elevated iron ore arrivals at Chinese ports and increasing global shipments.
Meanwhile, China’s state-backed iron ore buyer recently reached a new supply agreement with Rio Tinto, easing concerns over raw material availability.
The China Mineral Resources Group reportedly informed several steel mills verbally of the deal last week, although specific terms were not disclosed.
Previously, CMRG had instructed some steelmakers to suspend negotiations with Rio Tinto over shipments scheduled from September.
