Iron ore slips as shipments climb and China's steel demand stays weak

what happened

Iron ore futures moved lower on Tuesday. The most-traded contract on the Dalian Commodity Exchange (DCE) dropped 0.59% to 672 yuan ($101.08) per metric ton by 01:37 GMT. The December contract on the Singapore Exchange (SGX) was down the same 0.59%, at $90.70 a ton, as of 01:27 GMT.

Supply is the main pressure. Shipments from Australia and Brazil rose 1.3% week on week, reaching 27.9 million tons by November 2, per Mysteel. Analysts at Everbright Futures said the surplus of arrivals is persisting.

Chinese demand remains muted. Mills are reluctant to rebuild ore stocks given thin margins, softer downstream steel use and high steel inventories. Coking coal and coke fell 0.46% and 0.72%, as markets priced in more supply. A Mysteel survey shows 40 mines in Shanxi province still shut, down from 44 a week earlier; they were halted for safety checks after a fatal accident in May.

Steel futures on the Shanghai Futures Exchange traded sideways: rebar lost 0.3%, hot-rolled coil slipped 0.16%, and stainless steel gained 2.04%. Analysts at First Futures described bearish sentiment driven by seasonal demand weakness and no policy support in November.

why it matters

The story points to excess supply and weak Chinese steel demand weighing on raw materials. With mills trimming purchases on thin margins, no demand-side support is visible for now.

market impact

Iron ore and steel: rising supply and weak Chinese demand press prices lower

• ▼Iron ore futures (DCE and SGX) pressure down — rising shipments from Australia and Brazil meet cautious Chinese restocking
• ▼Coking coal pressure down — expected supply increase and weak steel demand

tags

instruments