Iron ore futures dropped below CNY 740 per ton on Wednesday, falling to their lowest level in two weeks as rising global supply coincided with a softer demand outlook in top consumer China.
Brazilian miner Vale reported its strongest second-quarter production since 2018, with iron ore output rising 0.8% from a year earlier and exceeding market expectations.
High inventories and ample physical supply across China also weighed on prices.
On the demand side, persistent rainfall in southern China and extreme heat across northern regions continued to disrupt construction activity, reducing steel consumption.
Industry data also showed blast furnace capacity utilization at surveyed steel mills fell below 90% last week, while mill profitability declined to around 37%.