Iron Ore Slips on Rising Shipments

Iron ore futures declined toward CNY 670 per ton, remaining close to four-year lows as increasing global supply continued to pressure the market. Industry data showed that shipments from major producers Australia and Brazil climbed 1.3% week-on-week to 27.9 million tons as of November 2, with miners boosting output to meet their quarterly and annual production targets. Meanwhile, demand in China, the world's largest iron ore consumer, remained subdued as steelmakers held back on restocking amid persistently weak profit margins, softer downstream steel demand and elevated inventory levels. Environmental restrictions imposed across several northern Chinese provinces also continued to constrain hot metal production. However, output is expected to rebound once these restrictions are lifted.