Market Insight: Iron Ore Retreats in Dalian Amid Rising Supply and Waning Global Steel Outlook

Iron ore futures in Dalian have declined as the supply of raw materials used in steel production strengthens and the global steel market outlook weakens. The January iron ore contract on the Dalian Commodity Exchange (DCE) concluded morning trading with a 1.39% increase at 746.5 yuan per ton ($104.91). Meanwhile, the benchmark November iron ore on the Singapore Exchange rose by 0.14% to $98.85 per ton. Analysts indicated that recent production reports from major miners reveal efforts to overcome supply cuts have increased production, while steel production has decreased. Fortescue, the fourth-largest iron ore miner globally, announced a 4% increase in first-quarter iron ore shipments today, although reported a decline in realized prices. Data released by the Japan Iron and Steel Federation yesterday showed a reduction in Japan's crude steel production by 3.6% from August and 5.8% year-over-year in September. On the Shanghai Futures Exchange, rebar fell by 0.57%, hot-rolled coil decreased by 0.63%, and wire rod and stainless steel declined by 1.0%.