Iron Ore Languishes at Four-Year Lows

Iron ore futures declined toward CNY 660 per ton on Tuesday, hitting fresh four-year lows amid signs of abundant global supply and a deteriorating demand outlook. China is entering a seasonally weaker period for steel consumption, while elevated oil prices have heightened concerns about the broader global economic outlook. Deteriorating profitability among Chinese steelmakers has further weighed on demand expectations, with industry data showing that the blast furnace operating rate across 247 Chinese steel mills stood at 80% last week, down 4.3 percentage points from the same period a year earlier. On the supply side, shipments from four major iron ore producers, including Rio Tinto Group and BHP Group, are expected to increase by nearly 20 million tons in the fourth quarter, while Guinea’s Simandou mine continues to expand production.