Iron ore futures fall as excess supply and weak demand weigh

Iron ore futures fell on Thursday as persistent excess supply and weak steel demand continued to weigh on the market.

China's state-backed iron ore buyer, China Mineral Resources Group (CMRG), has reached a new annual supply agreement with Rio Tinto, according to media reports, adding to bearish sentiment. Rising global supply and high port inventories remain key headwinds, reinforcing downward pressure on prices.

Steel traders also reported weak market sentiment, with October demand falling short of expectations and domestic steel prices declining in several regions. Lower export offers and a lack of positive market catalysts have added to the pressure, while gradual production cuts and planned mill maintenance have yet to provide sufficient support.

Iron ore futures on the Dalian Commodity Exchange fell by 1.62pct to 669 yuan (USD 100) per ton. Coking coal futures declined by 1.98pct to 1,384.5 yuan (USD 208) per ton, while coke futures dropped by 2.49pct to 1,896.5 yuan (USD 284) per ton.

On the Shanghai Futures Exchange, rebar futures fell by 0.68pct to 3,059 yuan (USD 459) per ton, while HRC futures declined by 0.92pct to 3,218 yuan (USD 482) per ton. Wire rod futures decreased by 1.04pct to 3,345 yuan (USD 501) per ton, while stainless steel futures rose by 1.63pct to 13,715 yuan (USD 2,056) per ton.