Iron ore heads back to $US100 on China slowdown

Iron ore fell towards $US100 ($143) a tonne yesterday on a seasonal slowdown in China, signs of a softening market balance, and a broad retreat in metals.

Futures in Singapore slid more than 2 per cent, touching an intraday low of $US100.25, with the commodity on pace for the lowest close since August.

The latest fall reflects a seasonal slowdown ahead of the lunar new year holiday later this month, with steel demand easing as mills scale back and restocking activity comes to an end.

At the same time, most base and precious metals prices retreated on Thursday in volatile trading. Iron ore has been losing ground after steel production in China posted another steep annual decline in 2025, crimping demand in the biggest user. On the supply front, leading miners in Australia have been reporting record production levels, just as the new “Pilbara killer” Simandou project in Guinea ramps up operations.

Near-record ore stockpiles at Chinese ports are adding to downward pressure on prices. Inventories at mills are also rising, according to MySteel data.

Iron ore was expected to fall on elevated port inventories, healthy mine output, and potential steel-output curbs in China, BMI, a unit of Fitch Solutions, said in a note earlier this week.

Prices are set to average $US95 a tonne this year, it said.

Futures were 2 per cent lower at $US100.50 a tonne in Singapore, while contracts in Dalian weakened. Steel contracts in Shanghai also fell.

All the iron ore miners were down yesterday, with BHP taking the biggest hit (down 3.9 per cent to $50.36).

Bloomberg.