Iron Ore Falls Below $90/t as China Demand Weakens
Iron ore futures fell below $90/t in the second half of October, while the KORE 62% Fe/Qingdao benchmark stood at $90.30/t CFR on October 27 as weak Chinese demand and expectations of higher supply continued to weigh on the market.
- SGX futures: Fell to $89.75/t on October 15 and $89.25/t intraday on October 27.
- KORE 62% Fe/Qingdao: $90.30/t CFR on October 27.
- Demand: Weak Chinese steel consumption, low mill margins and high port inventories restrained buying.
- Supply: Major miners maintained shipments while Simandou continued ramping up.
- Outlook: Market participants saw further downside risk in November.
Iron ore prices remained under pressure through the second half of October, with Singapore Exchange futures falling below $90/t for the first time since September 2024.
On October 15, SGX iron ore futures fell to $89.75/t. On October 27, they declined further to an intraday low of $89.25/t.
According to Kallanish, the KORE 62% Fe/Qingdao price stood at $90.30/t CFR on October 27.
Weak Chinese Demand Weighs on Ore Buying
Analysts cited weak demand in China, low steelmakers’ margins and significant port inventories as factors restraining iron ore purchases.
China is also approaching the seasonally weaker final two months of the year for steel consumption. Elevated oil prices and weaker expectations for the global economy added to the negative market backdrop.
Higher Supply Expectations Add Pressure
Leading global miners continued to maintain production and shipment volumes, while the ramp-up of the Simandou iron ore project in Guinea is increasing expectations for future supply.
Support from potential supply disruptions has also eased following agreements between China Mineral Resources Group and several major mining companies.
Rio Tinto and CMRG recently reached a long-term iron ore supply agreement covering the period from November 2026 through May 2028.
Market Participants See Further November Risk
Market participants said iron ore futures could remain under pressure in November as weak demand and China's efforts to limit steel production restrain raw-material consumption.
Earlier in October, China's iron ore market had already shown only moderate post-holiday buying, while expectations of stronger fourth-quarter supply were weighing on sentiment.
Courtesy: GMK Center. Market references include Kallanish and Singapore Exchange futures reporting.
