FX.co ★ Iron Ore Extends Losses for Third Session

Iron ore futures declined to below CNY 802 per ton on Wednesday, marking the third consecutive drop driven by ongoing concerns over market fundamentals. Analysts highlighted the pressure on prices due to weak margins in steel mills and an abundant seaborne supply. In the third quarter, China experienced a contraction in end-use steel demand, which counterbalanced the previous strength seen in manufacturing-related consumption. In response, Chinese authorities, as the world's leading steel producer, are planning to limit new capacity to tackle oversupply and falling prices. Nonetheless, some price support emerged from restocking ahead of the National Day holiday, while the cost of domestically mined iron ore concentrates rose across most regions last week because of limited availability and strong demand.