General weakness in the iron market amid the fragility of China's economy

The price of iron ore has dropped after issuing a package of negative economic data from China, which reflects a remarkable slowdown in the country’s economy over the past month. The official figures released on Friday showed that the production of factories and mines has registered the slower growth since November. China is the largest producer and consumer of iron and steel ru oil worldwide, enabling any slight change in economic activity to influence the levels of demand. Raw steel production dropped to 79.66 million tonnes during July, at the lowest level for the same month since 2017. However, the demand for strengthening steel recorded a seasonal weakness in July, which could explain the biggest decline in raw steel production, according to Jiang Mingtian, chief iron ore analyst at Horizon Insights. Iron stock in China explained that “the anti -production policy is expected to have a long -term impact on the production of the Ironmineral industry, but the results of production reduction will not appear immediately.” The price of iron ore has risen by more than 10% since it ended up to the lowest level during 2025 in the mid -June, supported by speculation that Beijing will reduce the surplus production capacity in the industrial sector. Although the Chinese government indicates that it is attempted to implement it in the steel sector, it has not yet announced a clear policy. Also read: The price of iron ore is still rising for the second day, over $ 104, and parallel has shown the data of the “Shanghai Steelhome E-Commerce” on Friday, a slight increase in iron ore supplies in Chinese ports compared to the previous week, but it is still at the lowest levels of the year 2024. Time, and it has decreased weekly for the same. The future contracts for iron crude oil were also recorded in the Dalian Stock Exchange and the steel contracts on the Shanghai Stock Exchange. On the London Stock Exchange, the price of copper stabilized at $ 9768 per tonne, while the price of aluminum rose slightly, while all other basic minerals listed on the stock exchange dropped.