Iron Ore Extends Decline on Ample Supply
Iron ore futures fell toward CNY 680 per ton, approaching four-year lows as abundant global supply, elevated Chinese inventories and falling shipping costs continued to pressure prices. Global mining capacity is expanding, while producers are boosting shipments in the fourth quarter to meet quarterly and annual targets. Iron ore shipments and arrivals at Chinese ports ...
Iron ore futures prices dropped towards CNY 680 per ton, nearing four-year lows, as a combination of factors continued to weigh on prices. This includes an oversupply of iron ore worldwide, large inventories in China, and decreasing shipping expenses. In addition, mining capacity globally is increasing, and companies are ramping up shipments in the fourth quarter to meet quarterly and annual production goals.
Additionally, iron ore exports to and imports from Chinese ports have remained high due to a substantial rise in shipments from smaller mines. Meanwhile, shipping costs have been falling, with the cost of transporting large ships (Capesize C5 route from Australia to China) decreasing by $0.64 per ton and the cost of transporting medium-sized ships (C3 route from Brazil to China) falling by $0.37 per ton on Monday.
The World Steel Association also forecasted that global steel demand would decline by 0.1% in 2026, which is a reversal of their April prediction of a 0.3% growth rate. This projection was made due to waning demand in China and complications arising from the US-Iran conflict.
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