Iron Ore Prices Dip As Global Shipments Expand And Steel Demand Slows

SEATTLE (Scrap Monster): Iron ore prices took a dip this week as global shipments picked up and steel demand started to lose momentum, with Asian and European market moves putting investors on alert.

What does this mean?

Iron ore futures drifted lower on both the Dalian and Singapore exchanges, as a jump in shipments from Brazil boosted global supply. In China, demand for steel linked to manufacturing was up 7% year-on-year in the first half of 2025, but end-use demand slumped in the third quarter – August saw the weakest growth so far this year. Despite that, iron ore prices actually inched higher in China last week, as northern mills ramped up output after curbs were lifted, sending hot metal production to 2.4 million tons, according to Everbright Futures. Meanwhile, Germany's Thyssenkrupp Steel received a buyout offer from India’s Jindal Steel International, which included fresh capital and a shift toward low-carbon production. And with coking coal staying steady but steel benchmarks in Shanghai falling, the market is clearly signaling caution.

Why should I care?

A surge in iron ore shipments, especially from Brazil, is putting pressure on prices just as China’s steel demand pulls back in the second half of the year. Shanghai’s rebar and coil benchmarks have slid, reflecting investor concerns over sluggish construction and weaker manufacturing. While steady coking coal prices hint that miners aren’t panicking, downward trends in steel suggest the sector is in wait-and-see mode.

Jindal Steel’s offer for Thyssenkrupp could shake up Europe’s steel landscape, bringing new investment and a push for greener production. With China’s appetite for key raw materials leveling off and European players eyeing transformation, the industry is facing a blend of near-term challenges and a bigger move toward sustainability.

 Courtesy: www.finimize.com