IRON ore fell to its lowest level in more than two years as weaker steel demand in China and rising supply weighed on prices, Bloomberg reported.
Benchmark futures in Singapore dropped as much as 1.4% to $89.25/t, their lowest intraday level since September 2024. Prices on China’s Dalian Commodity Exchange also touched a two-year low.
China is heading into a seasonally weaker period for steel consumption, while higher oil prices have added to concerns about the global economic outlook.
Mengtian Jiang, chief ferrous analyst at Horizon Insights, said iron ore was likely to remain weak through November and could fall towards $85/t-$86/t. The final two months of the year are historically the weakest for Chinese steel demand.
Supply is also set to rise. Shipments from the four biggest miners, including Rio Tinto and BHP, could increase by as much as 18 million tons in the fourth quarter, while production from Guinea’s Simandou mine continues to ramp up.
High stocks at Chinese ports have meanwhile left steel mills buying ore largely as needed rather than building inventories.
Some supply concerns have eased after China Mineral Resources Group resolved iron ore negotiations with major producers including Rio Tinto, although Fortescue remains in talks with the state-backed buyer.
Iron ore was trading 1.2% lower at $89.40/t in Singapore on Tuesday.