Iron Ore Slides on Expected Steel Production Cuts

Iron ore futures slipped toward CNY 680 per ton on Wednesday, reaching a one-week low as expectations of production restrictions across major steelmaking hubs in China’s Hebei province weighed on demand prospects.

Key steel-producing cities, including Tangshan and Handan, have entered the autumn-winter air pollution control period, during which unfavorable weather conditions have periodically disrupted sintering operations and blast furnace utilization. Expectations are growing that broader production restrictions could be introduced across Hebei, potentially placing further pressure on steel output. Industry data also showed that average hot metal production among Chinese steelmakers, a key indicator of iron ore demand, continued to decline.

Meanwhile, global iron ore shipments decreased by 5.57 million tons to 29.91 million tons in the week ending November 8. Shipments from Australia and Brazil also fell by 3.84 million tons to 24.06 million tons. Source: Trading Economics

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