SINGAPORE: Dalian iron ore futures prices slid to a one-year low on Monday, as a weakening steel market in top consumer China clouded demand prospects for the steel-making ingredient.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.64% lower at 702.5 yuan ($98.33) a metric ton.

The contract hit its weakest level since August 2023 at 688.5 yuan earlier in the session. The benchmark September iron ore on the Singapore Exchange, however, was 1.62% higher at $93.5 a ton, as of 0420 GMT. Iron ore markets have stabilised after a volatile week, but remain vulnerable given increasing supply and moderating demand, Westpac analysts said in a note.

Imports of iron ore to China during January to June rose 6% year-on-year to 611.6 million tons, Chinese financial information site Hexun Futures said. Meanwhile, Chinese crude steel output during January-July fell 2.2% to 613.7 million tons, data from the National Bureau of Statistics showed.

Sentiment in the domestic steel market remained weak from Aug. 12-16 amid weak performance of major ferrous futures and dull downstream demand, said Chinese consultancy Mysteel.

Total iron ore stockpiles across ports in China fell 0.5% week-on-week to 149.6 million tons as of Aug. 16, Steelhome data showed.