Iron Ore Slips on Weak Fundamentals

Iron ore futures fell below CNY 680 per ton, sliding toward four-year lows as rising port inventories, subdued steel mill profitability and sluggish demand continued to pressure prices. Industry data showed that iron ore stockpiles at major Chinese ports increased nearly 1% to 153.72 million tons in the latest week, while shipments from producers outside Australia and Brazil remained elevated. Meanwhile, profitability among Chinese steelmakers remained subdued at 11.26%, unchanged from the previous week. Environmental restrictions across several northern Chinese provinces also continued to weigh on hot metal production, although output is expected to recover once the curbs are lifted. Elsewhere, Brazilian mining giant Vale reported a 20% decline in third-quarter core profit, reflecting the impact of lower iron ore prices and persistently high fuel and freight expenses.