Iron ore slips to two-year low on concerns over weak demand, hiking supply
Oct 15: Iron ore prices slipped for a third straight session on Thursday to their lowest level in more than two years, weighed down by persistent concerns over weak demand in top consumer China and prospects of growing supply of the key steelmaking ingredient.
On October 15, iron ore prices experienced their third consecutive decline, marking their lowest level in over two years. This downward trend was attributed to persistent worries about diminished demand in the primary market, China, along with the looming increase in supply of the crucial steelmaking component. The most actively traded iron ore contract on China's Dalian Commodity Exchange (DCE) plummeted by 0.82% to 669 yuan (approximately $99.95) per tonne, marking its lowest price since September 24, 2024.
Similarly, the benchmark November iron ore on the Singapore Exchange experienced a 0.66% drop to $89.85 per tonne, its weakest point since September 24, 2024. Analysts at broker Zhengxin Futures pointed out that the weakening downstream steel demand during the peak season, coupled with falling freight rates, could potentially provide further downside for futures ore prices.
In fact, China's iron ore imports during the first nine months of 2026 surged by 4.1% compared to the previous year, totaling 954.97 million tonnes. This indicates that the annual imports for the year are projected to reach a record high. Alongside iron ore, coking coal and coke, other essential steelmaking materials, also experienced declines of 3.67% and 2.62%, respectively.
The weakening of steel benchmarks on the Shanghai Futures Exchange did not bode well either. Rebar decreased by 0.59%, hot-rolled coil fell by 0.43%, and stainless steel experienced a more substantial drop of 2.26%.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
