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11.09.202604:47:32UTC+00Iron Ore Extends Fall as Steel Margins Weaken

Iron ore futures fell below CNY 720 per ton, extending losses for a third consecutive session as deteriorating steel mill margins in China darkened the demand outlook for the key steelmaking raw material. Industry data indicated that only about 8% of Chinese steel mills remained profitable, sharply lower than roughly 30% a week earlier and around 60% a year ago. This share was the lowest since September 2024, with persistently high coke prices continuing to erode margins. At the same time, China Mineral Resources Group, the state-owned iron ore importer, has reportedly advised several steelmakers to refrain from buying Rio Tinto Group’s flagship Pilbara Blend ore. In parallel, South Korean logistics and shipping company HMM signed a long-term shipping contract with Brazilian miner Vale, valued at around US$3.5 billion, to transport iron ore beginning in 2030.

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