The iron ore market has struggled to gain momentum in May 2025, remaining mostly within a narrow price range. As of May 23, iron ore futures on the Dalian Exchange rose 2.2% since the beginning of the month, reaching $99.73/t. However, they declined by 2.3% over the past week. Meanwhile, Singapore Exchange prices slipped slightly to $98.25/t.
Market dynamics were shaped by contrasting factors. Chinese steelmakers faced weaker demand due to sluggish construction activity and disappointing macroeconomic indicators. Investor sentiment was dampened by reports of slowing industrial production and weak credit data. However, hopes for foreign economic improvements offered some support. Trade discussions between the US and China led to a temporary price boost, while a weaker US dollar made imports more appealing to Asian buyers.
Despite these influences, optimism remained restrained. Concerns over steel production declines in China and increased iron ore supply from Australia and Brazil weighed on the market. Analysts anticipate iron ore prices to stay within the $95-105/t range in the short term, with future trends dependent on economic signals from China and trade negotiations with the US.
