Iron ore experienced significant price fluctuations, initially dropping below $100 per ton and then rebounding following the release of Chinese data that presented a mixed outlook on steel demand. Futures prices, which had declined by over 13% the previous week, fell to $97 per ton in Singapore before recovering. Despite China's overall economic growth being supported by strong factory output and investment at the beginning of the year, steel production nationwide saw only a slight increase in the first two months. Iron ore prices have fallen by more than 25% since the beginning of the year, marking it as one of the weakest performers among major commodities. The decline is primarily attributed to concerns about demand in China, particularly amidst challenges in the nation's steel-focused property sector, leading some mills to reduce production. Chinese smelters have announced output cuts, indicating emerging signs of demand weakness. Iron ore inventories at Chinese ports, the world's largest importer, have been increasing, reaching 140.9 million tons last week, the highest level in over a year. Iron ore prices for April rose by 3.9% to $103.80 per ton in Singapore, with futures in Dalian also ending higher, while steel contracts in Shanghai showed strength.

Source: Bloomberg