The deepening of the Chinese real estate issue caused iron ore prices to fall below $100.

Iron ore fell below $100 per ton due to renewed pessimism about the future of the Chinese economy, halting the rebound as a burden on industrial products.

Iron & steel raw materials rose by about 10% in the past two weeks following interim signs that the worst period of the summer steel slump in China may have ended. However, prices were under pressure on Monday due to subdued manufacturing activity and another round of pessimistic news from China's real estate sector.

The prolonged real estate recession has put pressure on China's steel demand and caused a wave of losses throughout the industry. At a meeting held in Beijing last week, executives from 18 major Chinese producers pledged more 'self-discipline' to alleviate the oversupply of iron ore.

Singapore's iron ore futures fell 3.9% to $97.10 per ton by 3:47 p.m. local time. Shanghai's steel futures also dropped.

Chinese factory activity shrank for the fourth consecutive month in August, and the latest real estate sales statistics indicated a worsening housing recession. One of the largest domestic developers reported a deficit for the first time in over 20 years.

Angang Steel, the listed division of the second largest steel manufacturer in the country, revealed its eighth consecutive quarterly loss in its earnings report, stating that it is difficult to fundamentally improve the steel market's plight while supply exceeds demand.

The Beijing summit last week was convened by the China Iron and Steel Association to address the increasing pressure on the steel industry, which produces approximately 1 billion tons annually. The association stated that steel manufacturers need to avoid 'involutions' (a term that refers to the destructive competition prevalent in China in recent years).

The association also stated that the steel industry is accustomed to operating under conditions of continuous growth and that methods to counter the decrease in demand are still being worked out by companies, industry organizations, and the government.

With prices plummeting, there are few Chinese steel manufacturers that have made profits in 2024, and calls for action to halt the crisis of oversupply are growing. Angang Steel reported a net loss of nearly 1 billion yuan (approximately $140 million) in the second quarter, a decrease of about 15% compared to the same period last year.

Base metals joined the wide decline in Asia's financial markets, with zinc, which is often associated with sentiment in the Chinese steel market, leading the losses with a 1.5% drop. Copper fell 0.2%, while aluminum fell for the fourth consecutive day.