Iron Ore Extends Decline on Ample Supply

2026-10-13 07:22 By Jam Kaimo Samonte 1 min. read

Iron ore futures fell toward CNY 680 per ton, approaching four-year lows as abundant global supply, elevated Chinese inventories and falling shipping costs continued to pressure prices.

Global mining capacity is expanding, while producers are boosting shipments in the fourth quarter to meet quarterly and annual targets.

Iron ore shipments and arrivals at Chinese ports have also remained elevated, supported by a significant increase in volumes from smaller mining operations.

Meanwhile, freight costs continued to ease, with industry data showing the Capesize C5 route from Australia to China declining by $0.64 per ton and the C3 route from Brazil to China falling by $0.37 per ton on Monday.

Adding to the bearish outlook, the World Steel Association projected global steel demand would contract by 0.1% in 2026, reversing its April forecast for 0.3% growth amid weakening demand in China and disruptions stemming from the US-Iran conflict.



News Stream
Iron Ore Extends Decline on Ample Supply
Iron ore futures fell toward CNY 680 per ton, approaching four-year lows as abundant global supply, elevated Chinese inventories and falling shipping costs continued to pressure prices. Global mining capacity is expanding, while producers are boosting shipments in the fourth quarter to meet quarterly and annual targets. Iron ore shipments and arrivals at Chinese ports have also remained elevated, supported by a significant increase in volumes from smaller mining operations. Meanwhile, freight costs continued to ease, with industry data showing the Capesize C5 route from Australia to China declining by $0.64 per ton and the C3 route from Brazil to China falling by $0.37 per ton on Monday. Adding to the bearish outlook, the World Steel Association projected global steel demand would contract by 0.1% in 2026, reversing its April forecast for 0.3% growth amid weakening demand in China and disruptions stemming from the US-Iran conflict.
2026-10-13
Iron Ore Stabilizes on Chinese Steel Mill Restocking Hopes
Iron ore futures climbed toward CNY 690 per ton, recovering some ground after hitting four-year lows last week, as expectations of restocking by Chinese steelmakers following an extended holiday provided support, although weak market fundamentals continued to limit gains. More mills are expected to return to the spot market this week to replenish raw material inventories and maintain production levels. Meanwhile, lower spot coke prices helped ease cost pressures and narrow steelmakers’ losses, potentially slowing the pace of production cuts. However, signs of rising global supply capped the upside, as miners increased shipments to meet quarterly and annual targets in the fourth quarter. Recent data also revealed that only 6.9% of Chinese steelmakers were profitable at the end of September, highlighting persistent challenges across the sector.
2026-10-12
Iron Ore Approaches 4-Year Low
Iron ore futures dropped toward CNY 680 per ton, approaching their lowest levels since October 2022 as Chinese markets reopened after a week-long holiday, with weakening steel margins putting further pressure on prices. Industry data showed that just 6.9% of Chinese steelmakers were profitable by the end of September, while average daily hot metal output, a key indicator of iron ore demand, fell to a six-month low of 2.34 million tons. Reports also indicated that some Chinese steelmakers had begun or were planning equipment maintenance amid mounting losses, hurting the outlook for demand for raw materials such as iron ore. In other news, Australian iron ore miner Fortescue reported lower sales as a prolonged standoff with state-backed buyer China Mineral Resources Group over long-term supply agreements and pricing negotiations continued to weigh on activity.
2026-10-08