Iron ore futures in Singapore slipped to a two-year low under $90 a ton, extending a retreat fueled by soft demand in China and too much global supply. The steelmaking ingredient fell as much as 0.8% to $89.75 a ton, its weakest level on the Singapore Exchange since September 2024. Prices have slumped about 15% this year, with chronically weak construction activity in China keeping output under pressure at struggling steel plants.
With steel mills still making very little money, there is still room for further cuts to hot metal production, Chaos Ternary Futures Co. wrote in a note. Overall, we expect iron ore prices to remain range-bound with a downside bias in the short term. China’s crude steel output in the first eight months of this year was the lowest for the period since 2018 — a reflection of how the country’s yearslong property slump has stifled demand.
At the same time, supply of ore remains robust as new sources emerge, including Guinea’s Simandou mine. Futures in Singapore were 0.3% lower at $90.15 as of 11:10 a.m. local time. Iron ore also fell on the Dalian Commodity Exchange, while steel products retreated on the Shanghai Futures Exchange.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing