Iron ore prices are under pressure as Chinese steel demand enters its seasonal summer slowdown. DCE futures have fallen 6.8% in the past month to 764 CNY/t, reflecting weaker buying interest from steel mills in a softening demand environment.
Seaborne 62% Fe CFR China had rallied to $114-115/t in mid-May, its highest since May 2025, but has since reversed on the seasonal demand deterioration. Early summer heat and persistent rainfall in key construction regions have accelerated the slowdown.
Chinese apparent consumption of five major steel products fell 3.1% week-on-week in early June, after an already weak 0.5% decline the prior week. The data signals accelerating deterioration in end-user demand.
The traditional seasonal slowdown has come earlier than usual in 2026, driven by adverse weather and the ongoing structural weakness in China's property sector, which has not recovered despite policy support.
The seasonal slump is running ahead of schedule. Buyers should delay spot purchases and draw down existing inventory through July. The $95-100/t range is likely to provide support, but near-term momentum is to the downside.