FX.co ★ Iron Ore Hits 2-Year Low

Iron ore futures fell below CNY 700 per ton, hitting their lowest level since September 2024 as Chinese markets reopened after a week-long holiday and weakening steel margins further pressured prices. Industry data showed that only 6.9% of Chinese steelmakers were profitable by the end of September, while average daily hot metal output – a key gauge of iron ore demand – declined to a six-month low of 2.34 million tons. Reports also indicated that some Chinese steel producers had started, or were planning, equipment maintenance in response to mounting losses, dampening the demand outlook for raw materials such as iron ore. Meanwhile, Australian miner Fortescue reported a drop in iron ore sales, as a prolonged standoff with state-backed buyer China Mineral Resources Group over long-term supply contracts and pricing negotiations continued to weigh on activity.