(Bloomberg) — Iron ore headed for its deepest annual loss since 2015 after China’s property crisis hurt demand and miners boosted cargoes, with prices failing to get a lift from data showing signs of recovery in the top importer.
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Futures traded just above $100 a ton in Singapore, 28% lower over 2024. Prices erased an early intraday gain on the final day of the year even as China’s manufacturing purchasing managers’ index showed factory activity expanded for a third straight month in December.
The steel-making staple has been one of the worst performing commodities this year, with China’s sluggish economy weighing on demand as its years-long property crisis showed little signs of abating. The bulk of the retreat came in the first quarter, although prices went on to hit the lowest since 2022 in September.
Elsewhere, the LMEX Index of the six main base metals traded on the London Metal Exchange headed for a modest annual gain of 5%, with softer Chinese demand offset by flashes of supply stress in copper and zinc.
Prices were mixed on Tuesday, with zinc up 0.4% at $3,031.50 a ton, and tin — the strongest gainer over the year — down 0.7% to $29,085 a ton.
Iron ore was little changed at $100.45 a ton at 11:09 a.m. in Singapore, while yuan-priced contracts in Dalian were flat and steel contracts in Shanghai were lower.
–With assistance from Winnie Zhu.
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