FX.co ★ Iron Ore Slips on Weak Fundamentals

Iron ore futures have dipped below 790 CNY per ton, easing back from recent two-week highs as issues of global oversupply and dwindling demand in China, the largest consumer, exert pressure on prices. China is poised to import over 100 million tons of iron ore for the sixth consecutive month, setting the stage for a potential new record in annual imports. October also marked a peak in shipments from a key Australian export hub, withstanding the challenging economic conditions while still meeting robust Chinese demand. On the demand front, analysts cautioned that China’s production of hot metal—a critical indicator of iron ore usage—is likely to decrease in the coming weeks. Furthermore, China's central bank maintained its key lending rates unchanged for the sixth consecutive meeting in November, indicating a lack of immediate policy relaxation. In the United States, signals from the Federal Reserve suggest a potential pause in rate cuts for December, casting a shadow over the broader demand outlook.