Iron Ore Slips as Overseas Shipments and China Port Arrivals Rise

what happened

Iron ore futures softened on Tuesday as overseas cargo volumes grew and more vessels reached Chinese harbors, a sign that supply remains plentiful. By 02:50 GMT, the January contract on the Dalian Commodity Exchange had dropped 0.44% to 679.5 yuan ($101.74) per metric ton. The November benchmark in Singapore was off 0.29% at $91.3 a ton, Reuters reported.

Mysteel figures showed global iron ore shipments gained 3.89 million tons week on week, reaching 34.77 million tons in the seven days to October 18. Cargoes from Australia and Brazil climbed 4.79 million tons to 29.82 million. Arrivals at 47 Chinese ports rose 2.73 million tons to 28.35 million.

BHP reported quarterly iron ore output of 71.9 million tons from its Western Australian operations, versus 70.2 million a year earlier, and is working toward a 305 million ton annual rate by the end of fiscal 2028. Its fiscal 2027 guidance of 255 to 265.5 million tons was left unchanged, which analysts at Shanghai Metals Market interpreted as steady seaborne supply. Coking coal on the DCE fell 2.08% and coke 0.33%, while in Shanghai rebar lost 0.42%, hot-rolled coil 0.34%, and stainless steel was flat. Mysteel counted 48 Shanxi coking coal mines still idle as of October 19, six fewer than the week before.

why it matters

Heavy supply continues to weigh on iron ore and steel-linked prices, and analysts at Everbright Futures said supply-side pressure remains significant. For investors in miners such as BHP, rising output and unchanged guidance suggest the market is still absorbing extra tonnage, which could cap prices.

market impact

Iron ore and steel: ample supply weighs on raw material prices and steelmaker shares

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