Iron ore futures in Singapore slipped to near 91 dollars a tonne on Friday and traded at 91.25 dollars, down 0.1 percent, at midday local time, Bloomberg reported. The contract has lost more than 2 percent in October, its seventh monthly decline this year, and is heading for the lowest month end close since October 2022. Dalian futures also fell.
The drivers are supply and stocks, not a single demand shock. Ample global supply and elevated Chinese port stockpiles have curbed buying, and Bloomberg noted demand is likely to stay muted through year end because November and December are historically the weakest period for Chinese steel consumption. The price has been trending down since a May peak of 111.60 dollars, with only a brief August recovery.
Intramonth prints were weaker than the month end level. The Singapore November contract touched 89.25 dollars a tonne on October 27, its lowest since September 2024, and Kallanish put 62 percent Fe material delivered to Qingdao at 90.3 dollars on the same day.
For miners, the level matters more than the direction. This site reported on Thursday that Champion Iron sold record volumes in its September quarter at a net realised price below its all in sustaining cost, a cash margin of minus 8 Canadian dollars a tonne. At near 91 dollars, that squeeze extends across the higher cost end of the seaborne curve, while the majors’ low cost tonnes remain profitable. Rio Tinto shares fell 3.12 percent and BHP fell 0.49 percent in the market tables updated this morning.