[China's steel slowdown puts iron ore demand and dry bulk flows in focus]

Published: Sep 25, 2026 10:21 (GMT+8)

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China Iron and Steel Association (CISA) urged mills to restrain output, signalling softer steel demand and weaker iron ore and dry bulk flows. Intermodal's Nikos Tagoulis cites domestic headwinds: August construction PMI was 46.9, below 50; January-August infrastructure investment fell 4% and real estate investment 19.9%. Crude steel output fell 3.7% y-o-y in August and 3.1% in January-August 2026, partly on heat and rain. CISA's call is not mandatory but could curb feedstock demand. Pre-holiday restocking lifted buying, with Australian shipments to China up 6.2% w-o-w in September's third week (Mysteel). Only 7.8% of blast-furnace mills were profitable in mid-September, favouring cheaper Australian ore despite high coke prices; shorter Australian voyages could cut ton-mile demand.

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