Iron Ore Slides Toward Four-Year Low

Iron ore futures declined to around CNY 670 per ton, approaching their lowest levels since October 2022 as rising supply and weakening demand continued to weigh on the market. Industry data showed that iron ore inventories at major Chinese ports increased for another week, with Brazilian shipments contributing to the buildup for a fourth consecutive week. Demand prospects were further dampened by anticipated production restrictions across key steelmaking hubs in China's Hebei province. Major steel-producing cities, including Tangshan and Handan, have entered the autumn-winter air pollution control period, during which unfavorable weather conditions have periodically disrupted sintering operations and blast furnace utilization. Meanwhile, industry figures indicated that average hot metal output among Chinese steelmakers, a key gauge of iron ore demand, continued to decline, adding further pressure to prices.

Iron ore futures declined toward CNY 670 per ton, reaching over one-week lows as expectations of production restrictions across major steelmaking hubs in China’s Hebei province weighed on demand prospects. Key steel-producing cities, including Tangshan and Handan, have entered the autumn-winter air pollution control period, during which unfavorable weather conditions have periodically disrupted sintering operations and blast furnace utilization. Expectations are growing that broader production restrictions could be introduced across Hebei, potentially placing further pressure on steel output. Industry data also showed that average hot metal production among Chinese steelmakers, a key indicator of iron ore demand, continued to decline. Meanwhile, global iron ore shipments decreased by 5.57 million tons to 29.91 million tons in the week ending November 8. Shipments from Australia and Brazil also fell by 3.84 million tons to 24.06 million tons.

Iron ore futures steadied above CNY 680 per ton on Tuesday, remaining near four-week highs as global shipments and arrivals at Chinese ports recorded significant declines. Industry data showed that global iron ore shipments dropped by 5.57 million tons to 29.91 million tons in the week ending November 8. Shipments from Australia and Brazil also fell by 3.84 million tons to 24.06 million tons. Meanwhile, arrivals at major Chinese ports declined by 2.5 million tons over the same period to 27.64 million tons. Official figures also revealed that China’s iron ore imports fell 3.8% month-on-month in October, reaching their lowest level in five months. Additionally, demand expectations for the key steelmaking raw material remained subdued due to production curbs in northern China driven by environmental concerns. Industry data further indicated that average hot metal output among Chinese steelmakers, a key gauge of iron ore demand, continued to trend lower.