Iron Ore Prices in China Fail to Gain Support from Manufacturing PMI Data

Iron ore is on track for its deepest annual loss since 2015 as the real estate crisis in China hurts demand and miners increase shipments, with prices failing to find support from data showing signs of recovery in the largest importer.

Futures traded just above $100 per ton in Singapore, representing a 28% decline compared to 2024. Prices erased intraday gains on the last day of the year, despite data showing that China's manufacturing purchasing managers index indicated factory activity expanded for the third consecutive month in December.

The key ingredient for steel production has become one of the worst-performing commodities this year as demand faced pressure amid little sign of relief from China's sluggish economy and ongoing real estate crisis. Although prices fell to their lowest level since 2022 in September, much of the pullback occurred in the first quarter.

On the other hand, the LMEX Index, which comprises six key metals traded on the London Metal Exchange, saw a modest annual rise of 5% as demand from China balanced supply strains in copper and zinc.

Iron ore traded at $100.45 per ton in Singapore at 11:09 am, showing little change, while yuan-denominated contracts in Dalian remained steady, and steel contracts in Shanghai declined.