Iron ore futures prices edged lower across major exchanges on Wednesday, weighed by rising shipments from top producer Brazil and a cautious steel demand outlook.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.12% lower at 804.5 yuan ($113.17) a metric ton.
The benchmark September iron ore on the Singapore Exchange was 0.11% lower at $105.6 a ton, as of 0703 GMT.
According to broker Galaxy Futures, manufacturing steel consumption grew 7% year-on-year during the first half, but end-use steel demand dropped off quickly in the third quarter, with August’s year-on-year growth in domestic end-use steel consumption likely to be the lowest for 2025.
Globally, iron ore shipments rose in the third quarter, with Brazil accounting for the majority.
Still, consultancy Mysteel noted that imported iron ore prices in China increased last week, driven by stronger demand from North China steelmakers after production curbs were lifted and normal operations resumed.
Hot metal production, a gauge of iron ore demand, increased by 117,100 tons month-on-month to 2.4055 million tons, said Chinese broker Everbright Futures in a note on Wednesday.
Thyssenkrupp Steel Europe TKA, Germany’s biggest steel producer, has received a non-binding takeover offer from Jindal Steel International, part of the Indian Naveen Jindal Group.
Jindal Steel has pledged significant investment and plans to convert the unit into Europe’s leading low-emission steelmaker.
Other steelmaking ingredients on the DCE increased, with coking coal up 0.37% and coke (DCJcv1) 0.46% higher, following gains of more than 5% for both in the previous session.
Spot checks on overproduction at coal mines are likely to continue, providing significant support for coking coal prices, Galaxy added in the same note.
Steel benchmarks on the Shanghai Futures Exchange mostly decreased. Rebar RBF1! edged up 0.06%, while hot-rolled coil EHR1! lost 0.38%, wire rod (SWRcv1) dipped 0.18% and stainless steel HRC1! eased 0.92%.
Source: Reuters