Iron ore prices tumbled below $US100 per tonne late Tuesday, driven by a lack of substantial stimulus from a recent policy meeting in China and robust supply levels. The steelmaking material fell by up to 3.5%, reaching $US99.85 in Singapore, and appears set for a third consecutive day of losses.
This decline follows the Third Plenary Session of the Chinese Communist Party, which wrapped up last week. The session, held once every decade, fell short of investor expectations by not introducing significant measures to boost metals demand or address the persistent property crisis in China.
On the supply front, data from Brazil, the second-largest iron ore exporter after Australia, showed daily average shipments hitting 1.62 million tonnes during the first 15 business days of July—an accelerated pace compared to the full month last year. Additionally, major mining companies have reported record production levels recently.
Iron ore prices have fallen by over 25% this year, making it one of the worst-performing major commodities. The price briefly dipped below $US100 in March and April. This decline is attributed to a global surplus in the seaborne market and growing stockpiles at ports.
Han Jing, a senior analyst at SDIC Essence Futures, noted, “The recent macroeconomic policy from China did not provide any surprises beyond what was already anticipated.” Jing also highlighted weak demand for steel products and a global surplus in supply as key factors driving the lower iron ore prices.
