FX.co ★ Iron Ore Slips on Rising Shipments

Iron ore futures fell toward CNY 670 per ton, hovering near a four-year low as rising global supply continued to weigh on prices. Industry data showed that combined shipments from major producers Australia and Brazil increased 1.3% week-on-week to 27.9 million tons as of November 2, with miners ramping up output to meet quarterly and annual production targets.

On the demand side, consumption in China, the world’s largest iron ore buyer, remained weak. Steelmakers were reluctant to rebuild inventories amid persistently thin profit margins, sluggish downstream steel demand, and already high stock levels. Environmental curbs across several northern Chinese provinces also kept hot metal output in check. Production is, however, expected to recover once these restrictions are lifted.