FX.co ★ Iron Ore Extends Losses on Rising Supply, Weak Demand

Iron ore futures experienced a decline on Wednesday, settling at approximately CNY 700 per ton. This marked the second consecutive session of downturn driven by increasing supply pressures and a seasonal reduction in demand from China. According to industry data, shipments to China from major exporters Australia and Brazil soared to 30.1 million tons last week, representing the highest weekly volume recorded this year. Intensifying the supply-side challenge, Rio Tinto, the world’s leading iron ore producer, obtained final government approvals for its Hope Downs 2 project—a collaborative venture with Hancock Prospecting. This project is anticipated to yield 31 million tons annually. On the demand side, the World Steel Association reported a 3.8% year-on-year decline in global steel production for May, mirroring reduced construction and manufacturing activities.