Iron ore price falls as top miners deliver production reports

Iron ore has been in decline for most of 2024 as an economic slowdown in China, including a housing crisis, curbs domestic demand for steel. Industry challenges have forced factories to cut production while increasing sales abroad. In recent weeks, Beijing has unveiled new steps to support growth, with monetary and fiscal measures, although details of the latter remain unclear.

At the same time, leading mining companies have been stockpiling and hedging their large-scale operations with costs per ton well below current spot levels. In Australia, flows through Port Hedland – the country’s largest bulk export terminal – set a record in September. In Brazil, deliveries this month were the second highest on record.

Iron ore futures fell to $106.05 at 3:03 p.m. in Singapore, after losing as much as 1.6% to $105.85. They have fallen by almost a quarter this year, making the raw material for steel production one of the worst-performing raw materials in 2024. In China, steel contracts at yuan prices fell.

(By Jake Lloyd Smith)

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