Iron Ore Prices Hit One-Year Low Amid Radiant World Scandal

Iron ore futures in Singapore fell to $94.10 a ton, marking their lowest point in more than a year. The price drop stems from allegations that Radiant World, a major physical trader, used fake invoices in its operations. In response to these claims, commodity trading firms Vitol Group and Cargill Inc. have ceased doing business with the company.

Financial institutions are also reacting to the instability. Intesa Sanpaolo SpA and the Point Bonita fund managed by Jefferies Financial Group Inc. are currently reviewing their exposures to the firm. Radiant World has denied the fraud accusations, describing them as "categorically untrue".

Market weakness is further exacerbated by failing steel industry fundamentals in China. The region has seen mill margins weaken and hot-metal output decline for four consecutive weeks. Additionally, construction activity in China has fallen to its lowest level since the start of the pandemic.