Iron ore prices fell below $100 a ton in Singapore trading, hitting $99.10 as abundant seaborne supplies and weakening Chinese demand pressure the market. Futures dropped 2.1% for a second consecutive day, marking the first sub-$100 levels since March. China, the world's largest iron ore importer, saw steel production contract again in May, while fixed-asset investment slumped to pandemic-era lows.

Citic Futures researcher Hu Yanbing noted that high supply and inventory levels are becoming increasingly apparent at current prices. The steel-making commodity has declined roughly 6% this year, extending a run of five weekly losses — its longest since February. Chinese macroeconomic weakness is hitting ferrous metals particularly hard, with both consumption and investment falling short of expectations.

Traders are watching Guinea's massive Simandou mine ramp up output, adding further supply pressure to global markets. A separate drag on prices came from this week's crude oil slump, triggered by expectations that the Strait of Hormuz reopening could ease shipping costs. Lower freight rates reduced cost support for iron ore shipments.

The confluence of oversupply and underwhelming Chinese demand creates a challenging near-term outlook for the steel ingredient. With inventory levels elevated and economic indicators pointing southward, iron ore's downward trajectory appears set to continue until either Chinese stimulus materializes or supply tightens meaningfully.