MANILA: Iron ore futures in China sank on Thursday to a fresh one-year low, dragged down by a gloomy demand outlook for steel products and raw materials in the world’s biggest steel producer.

The most-traded iron ore for January delivery on the Dalian Commodity Exchange slumped as much as 4.6% to 514 yuan ($80.62) a tonne, falling for a fifth consecutive session to its lowest level since Nov. 9, 2020.

On the Singapore Exchange, iron ore’s front-month December contract dropped 2.9% to $86.20 a tonne.

“The price of iron ore has not yet bottomed out,” analysts at Zhongzhou Futures Co Ltd wrote in a weekly note, citing continuing steel production curbs in China in line with its decarbonisation goals and the turmoil in the country’s property sector.

“The profit of some steel mills turned negative, and the steel mills switched from administrative restriction of production to active maintenance,” they said.