Iron ore futures prices fell during Tuesday’s trading, following the shipment of the first batch of production from the Simandou project in Guinea, which strengthened expectations of increased supply at a time when demand in China—the world’s largest consumer—is expected to weaken.
The most actively traded iron ore contract for May 2026 delivery on the Dalian Commodity Exchange closed down 0.7% at 757.5 yuan ($107.22) per ton.
On the Singapore Exchange, iron ore futures for January 2026 delivery dropped 0.35% to $101.70 per ton as of 1:12 p.m. Makkah time, after touching $100.85 earlier.
Although supplies from Australia and Brazil—the two main iron ore exporters—account for around 80% of China’s imports, analysts expect this share to decline with the start of production from the Simandou project, which has an annual capacity of 120 million tons.
This anticipated increase in supply comes as China’s crude steel output is expected to fall below one billion tons this year for the first time in six years, indicating a potential decline in demand, according to Reuters.
