Iron Ore Drops to Over One-Year Low as Trader Scandal Compounds Weak Demand
Taylor Wilson
Iron ore futures dropped below $95 a ton to their lowest since early July 2025, hit by a double blow — an invoice-fraud scandal at trader Radiant World and shrinking Chinese steel demand — raising the risk of tighter physical-market liquidity.
How far has it fallen?
Singapore futures hit an intraday low of $94.10 a ton, down 1.9% — the weakest since early July 2025.
The Dalian Commodity Exchange benchmark dropped nearly 3%; Shanghai steel futures fell in tandem.
Iron ore has now posted losses for three straight months, the longest losing streak in over a year.
What is the Radiant World scandal?
Radiant World — a private commodities trading house — is alleged to have fabricated invoices; the scandal continues to widen.
This means → industry giants are cutting ties: Vitol Group and Cargill have stopped dealing with the firm; Intesa Sanpaolo and Jefferies' Point Bonita fund are reviewing their exposure.
In plain terms = when major traders and banks all distance themselves from one firm at once, the market worry is not just about that firm — it is whether trust across the entire iron-ore trading chain starts to crack.
Radiant World has called the reports "completely untrue."
What is wrong on the demand side?
Chinese steelmaker margins narrowed further last week; hot-metal output has declined for four consecutive weeks.
Construction activity in China has fallen to its lowest level since the Covid outbreak; July manufacturing activity contracted for the first time in five months.
This means → iron ore's two main end-demand channels — construction steel and manufacturing steel — are slowing at the same time, with no near-term signal of a rebound.
What is the market watching next?
The key variable: whether the Radiant World fallout further squeezes physical-market liquidity for iron ore.
In plain terms = actual iron-ore transactions depend on traders matching buyers and sellers; if more traders pull back because of the scandal, the "pipeline" from mine to mill narrows, and price swings could intensify.
Combined with persistent demand weakness, iron ore faces continued downside pressure in the near term.
Content is for reference only, not financial advice.