Iron-ore hits two-year low as concerns over China demand dominate
Iron-ore prices slid on Tuesday to their lowest in more than two years, weighed down by mounting concerns over demand prospects in top consumer China.
The most-traded iron-ore contract on China's Dalian Commodity Exchange fell 1.19% to 662 yuan ($99.25) a ton, as of 02:14 GMT, after touching its weakest since September 24, 2024, at 661.5 yuan earlier in the session.
The benchmark November iron-ore the Singapore Exchange dropped 1.15% to $89.45 a ton as of 02:04 GMT. It hit its lowest level since September 23, 2024, at $89.3 earlier.
Steel demand has weakened seasonally, with persistently thin margins suppressing hot metal output, while ore supply is expected to rise in the fourth quarter, souring market sentiment and driving ore prices lower, according to Jiang Mengtian, an analyst at consultancy Horizon Insights.
Hot metal output is typically a gauge of iron ore demand. Steel consumption normally contracts in the fourth quarter as low temperatures in the northern region hinder outdoor construction.
"Weakness in the steel market has permeated into the upstream feedstock markets as mills were cautious about replenishing raw materials amid high portside ore stocks and anticipation of rising supply," said Chu Xinli, an analyst at broker China Futures.
Coking coal and coke, other steelmaking ingredients, slipped 2.03% and 1.86%, respectively.
Steel benchmarks on the Shanghai Futures Exchange weakened. Rebar lost 0.79%, hot-rolled coil shed 1.28%, wire rod declined 1.89% and stainless steel fell 1.51%.
