Iron ore dropped to the lowest level in more than two years on a weaker demand outlook and rising supply through year-end. Benchmark futures in Singapore fell as much as 1.4% to $89.25 a ton, the lowest intraday level since September 2024. Prices on the Dalian Commodity Exchange were also at a two-year low.
China is approaching a seasonally weak period for steel consumption, while elevated oil prices have raised concerns about the global economic outlook, leaving few catalysts for a potential rebound. “Iron ore is likely to stay soft through November,” said Mengtian Jiang, chief ferrous analyst at Horizon Insights. Prices could extend declines toward $86 to $85 a ton, with the last two months of the year historically the weakest period for steel consumption.
Iron ore shipments from the four major miners, including Rio Tinto Group and BHP Group, are expected to rise by as much as 18 million tons in the fourth quarter, while Guinea’s Simandou mine continues to ramp up output. Iron ore was 1.2% lower at $89.40 a ton as of 10:45 a.m. Singapore time.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing