Steel Market Update: Iron Ore Extends Weekly Losses on Weak China Demand

Advisory Bazaar Info Services | July 31, 2026

Global steel markets remained under pressure on Friday as weak manufacturing activity in China and slowing construction demand weighed on sentiment. Iron ore futures extended losses for a sixth consecutive session, while declines in coking coal and coke prices reflected softer expectations for steel demand.

Iron Ore Market

Dalian iron ore futures fell 0.76% to 720 yuan ($106.70) per metric ton, marking the sixth straight session of losses. The benchmark contract declined 3.1% for the week, its steepest weekly drop since early April.

Weak Chinese Demand Weighs on Sentiment

China’s factory activity unexpectedly contracted in July as new orders weakened, raising concerns over the country’s economic growth and steel consumption. The latest data has dampened expectations for a near-term recovery in steel demand.

Construction Steel Demand Softens

Construction steel transaction volumes dropped 19.1% from the previous week to 72,700 metric tons, highlighting sluggish demand from the construction sector. Combined with rising supply, the weaker demand outlook has reduced expectations for a significant market rebound.

Supply Risks Remain

Despite the bearish demand outlook, supply concerns persist. A proposed 24-hour strike by BHP Group workers at Port Hedland, Australia’s largest iron ore export hub, could temporarily disrupt loading operations and affect global iron ore shipments if the industrial action proceeds.

Raw Material Performance

Steelmaking raw materials also traded lower, with coking coal falling 3.48% and coke declining 2.91%, reflecting the overall weakness across the ferrous complex.

Steel Futures Performance

Steel benchmark futures delivered mixed performance:

* Rebar declined 0.53%.

* Wire rod gained 0.40%.

* Stainless steel advanced 0.45%.

Market Outlook

The global steel market is expected to remain under pressure in the near term as weak Chinese demand and ample supply continue to weigh on prices. However, potential supply disruptions from Australia and any additional economic stimulus measures from China could provide short-term support to iron ore and steel markets.