Iron ore prices have begun September trading with a significant decline, continuing a downward trend exacerbated by persistent weakness in China's property sector. As of September 2, iron ore futures fell 3.9% to $97.10 per ton in Singapore, marking a return below the critical $100 threshold.

This slump follows a brief period of recovery, where prices had risen nearly 10% over two weeks due to hopes that the worst of the summer's downturn might be over.

However, disappointing manufacturing activity and ongoing struggles in the property market, which remains the largest consumer of steel, have dampened demand. Recent data indicates that factory activity in China has contracted for four consecutive months, and major developers are reporting significant losses. The China Iron & Steel Association has called for greater self-discipline among producers to manage the oversupply of steel, which has led to negative profit margins for many mills.

Analysts suggest that the iron ore market may continue to face downward pressure as supply outstrips demand, with predictions of prices potentially dropping to $90 per ton if current conditions persist.