Iron ore drops to five-week low on weak Chinese demand

Iron ore fell below $100 a ton, its lowest in over five weeks, as weak industrial profits in China fueled concerns about economic slowdown. Futures in Singapore dropped to $98.95 a ton before recovering slightly to $99.10.

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China’s industrial profits declined for a fourth straight month in November, heading for the steepest annual drop since 2000, despite a modest improvement in steelmakers’ margins. Iron ore prices have plunged 29% this year, weighed down by China’s economic struggles and rising exports from major suppliers like Australia and Brazil.

Steel futures in Shanghai also softened, while base metals showed mixed performance. Copper gained 0.5% on the London Metal Exchange, while aluminum and zinc fell 0.5%.