Iron ore eases on firm Australia supply outlook, China demand cushions fall

Singapore: Iron ore futures snapped a three-day rally on Tuesday amid strengthening supply outlook from top producer Australia, but resilient steel demand in China cushioned the fall.

The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade 0.42 per cent lower at 703 yuan ($97.97) a metric ton.

 

The benchmark July iron ore on the Singapore Exchange lost 0.71 per cent to $93.2 a ton as of 0725 GMT.

 

Rio Tinto, the world's largest iron ore producer, is entering a joint venture with Hancock Prospecting to develop the Hope Downs 2 project in Western Australia.

The two iron ore pits will have a combined total annual production capacity of 31 million metric tons, Rio said in a statement.

 

Hot metal production, a gauge of iron ore demand, rose 0.24 per cent to 2.422 million tons week-on-week as of June 20, data from Mysteel showed.

"Volumes have stayed around 2.4 million tons since April, suggesting resilience in the world's largest steel market," ANZ analysts said.

Still, the steel market is pricing in expectations of weaker seasonal demand, Hexun Futures said.

Meanwhile, iron ore shipments from Australia and Brazil jumped 8.8 per cent week-on-week during June 16-22, the highest since June 2024, Chinese consultancy Mysteel said.

 

Other steelmaking ingredients on the DCE fell, with coking coal and coke down 1.94 per cent and 2.03 per cent , respectively.

Steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar and hot-rolled coil dipped about 0.5 per cent , wire rod fell 0.9 per cent and stainless steel eased 0.28 per cent .