Iron ore edges lower amid uncertain demand outlook

Iron ore futures edged down on Tuesday as market sentiment remained cautious amid an uncertain demand outlook.

A seasonal slowdown in steel demand has led to reduced steel production, weighing on market confidence. However, analysts note that many steel mills have managed to stay profitable thanks to lower raw material costs, suggesting that any decline in production is likely to be limited.

Still, long-term demand for iron ore faces headwinds from ongoing troubles in the property sector and rising trade tensions. Protectionist measures targeting Chinese steel exports and escalating friction between Beijing and Washington continue to cloud the outlook.

Adding to concerns, geopolitical tensions in the Middle East are fueling worries about global trade disruptions, which could further dampen steel demand.

On the Dalian Commodity Exchange, the most-traded September iron ore contract dipped 0.07pct to 699 yuan (USD 97.3) per ton. Meanwhile, coke and coking coal futures gained 1pct and 0.7pct, settling at 1,365.5 yuan (USD 190) and 789.5 yuan (USD 110) per ton, respectively.

On the Shanghai Futures Exchange, rebar futures rose 0.17pct to 2,981 yuan (USD 415) a ton, while HRC futures edged up 0.13pct to 3,093 yuan (USD 431) per ton. Wire rod futures slipped 0.45pct to 3,289 yuan (USD 458), and stainless steel futures declined 0.48pct to 12,480 yuan (USD 1,738) per ton.

1 USD / 7.18 yuan