Iron ore hits 2-year low as concerns over China demand dominate

Iron ore prices plummeted to their lowest level in over two years, driven by apprehensions over demand in China, its primary market. The most-traded iron ore contract on China’s Dalian Commodity Exchange declined by 1.19%, settling at 662 yuan ($99.25) per metric ton, following its lowest point since September 24, 2024, at 661.5 yuan.

On the Singapore Exchange, the benchmark November iron ore fell by 1.15% to $89.45 a ton, marking its lowest level since September 23, 2024, at $89.3. Analyst Jiang Mengtian from Horizon Insights attributed the drop to seasonally weakened steel demand, persistent thin margins, and an anticipated rise in ore supply in the fourth quarter.

Chu Xinli, an analyst at broker China Futures, noted that steel consumption typically declines in the fourth quarter due to low temperatures in the northern region, which deter outdoor construction. Consequently, steelmaking components such as coking coal, coke, rebar, hot-rolled coil, and stainless steel also experienced declines, with coking coal and coke dropping by 2.03% and 1.86%, respectively.