Dalian iron ore hits 15-month low on thin steel margins

Business Recorder reported that iron ore futures on China's Dalian Commodity Exchange hit a 15-month trough on Thursday, the first trading day after a week-long national holiday. The most-traded contract fell 1.85 per cent to 691.5 yuan ($103.19) per metric ton, its weakest level since June 2025. Concerns about demand prospects and thin steel margins pushed prices lower.

A Mysteel survey showed some Chinese steelmakers had started or planned equipment maintenance as their losses deepened. Only about 6.9 per cent of them were profitable by the end of September, while average daily hot metal output, a gauge of demand, slid to a six-month low of 2.34 million tons. First Futures analysts expect ore supply to rise while steelmaker profitability stays under pressure.

The Singapore benchmark November contract, however, was up 0.93 per cent at $92.3 a ton by 0153 GMT, after losing 1.2 per cent during China's holiday break from October 1 to 7. Coking coal and coke rose 2.73 per cent and 1.23 per cent, while Shanghai Futures Exchange steel benchmarks such as rebar, hot-rolled coil and stainless steel declined. Falling freight rates and easing energy prices also added pressure on steelmaking ingredients.