Iron ore has fallen to its lowest point in over a year, with Singapore futures sliding to $94.10 per tonne amid growing worries about Chinese steel demand and fresh concerns over a major physical trader. The commodity has now posted three consecutive monthly drops, its longest losing streak in more than twelve months.
The sell-off accelerated on Monday when Singapore contracts dropped as much as 1.9% intraday, reaching the weakest level since early July 2025. In Dalian, China’s most active iron ore contract lost almost 3%, while the benchmark grade with 61% iron content declined 1.6% to $94.35 per tonne.
China, the world’s largest steel producer and a key iron ore consumer, is at the centre of the market’s worries. Chinese steelmakers are dealing with falling margins, and pig iron output has now decreased for four straight weeks.
Trader fears add to market tension
The latest wave of nervousness was linked to Radiant World, one of the larger private iron ore traders. Bloomberg reported that Vitol Group and Cargill Inc. had suspended cooperation with the company amid concerns over potentially fraudulent invoices. Intesa Sanpaolo and Jefferies Financial Group’s Point Bonita fund were also said to review their exposure.
– Extremely untrue – Radiant World said.
So far, no clear disruptions in physical supplies have emerged; Horizon Insights analyst Bancy Bai pointed out that the spot market has not shown obvious irregularities.
Commodity trading depends heavily on credit relationships, liquidity and counterparty trust. Any information that damages those elements can quickly make buyers and transaction financiers more cautious.
China’s steel engine is running out of steam
The Radiant World case comes at a time when iron ore was already under pressure from weak steel sector fundamentals. Construction activity in China, a vital source of steel demand, has dropped to its lowest level since the start of the pandemic. Industrial activity in July contracted for the first time in five months, adding another obstacle for steelmakers.
At around $94 per tonne, the largest mining companies remain profitable thanks to low production costs, though revenue pressure is rising.
Investors are now watching two issues: whether the Radiant World affair will affect liquidity in the physical iron ore trade, and whether China’s steel sector can find a rebound point. For now, the market assumes a more cautious scenario: less steel, softer demand and higher sensitivity to every new risk signal.
Źródło: WNP.PL, Fot. Pexels
