FX.co ★ Iron Ore Extends Fall on Rising Supply

Iron ore futures have declined to approximately CNY 750 per ton, hitting a five-month low. This decrease coincides with the first shipment from the extensive Simandou project in Guinea, which has heightened expectations of increased global supply just as demand from China, the leading consumer, begins to wane. The Simandou project is poised to yield 120 million tons of iron ore annually, potentially reducing the dominance of leading suppliers, Australia and Brazil. Furthermore, the China Iron and Steel Association has recently convened with prominent domestic miners and regulators to explore ways to boost the country's iron ore production. Additionally, recent data indicates that China's iron ore imports fell for the second consecutive month in November, reflective of a slump in demand; several steel mills have curtailed operations to conduct equipment maintenance due to narrowing margins. In November, China imported 110.54 million metric tons of iron ore, a slight decrease from October's 111.3 million tons, yet an increase from the 101.86 million tons imported in the corresponding month of the previous year.