Iron Ore Slides Toward Four-Year Low

Iron ore futures declined to around CNY 670 per ton, approaching their lowest levels since October 2022 as rising supply and weakening demand continued to weigh on the market. Industry data showed that iron ore inventories at major Chinese ports increased for another week, with Brazilian shipments contributing to the buildup for a fourth consecutive week. Demand prospects were further dampened by anticipated production restrictions across key steelmaking hubs in China's Hebei province. Major steel-producing cities, including Tangshan and Handan, have entered the autumn-winter air pollution control period, during which unfavorable weather conditions have periodically disrupted sintering operations and blast furnace utilization. Meanwhile, industry figures indicated that average hot metal output among Chinese steelmakers, a key gauge of iron ore demand, continued to decline, adding further pressure to prices.