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

Dalian iron ore prices touched a 15-month low on Thursday, the first working day after a week-long holiday break in top consumer China, weighed down by concerns over demand prospects amid weak steel margins.

By 0204 GMT, the most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) fell 1.85% to 691.5 yuan ($103.19) a metric ton, the weakest since June 2025.

Some Chinese steelmakers either started or planned equipment maintenance as losses deteriorated, according to a survey by consultancy Mysteel on Wednesday.

“Profitability among steelmakers remained under pressure while ore supply is expected to increase,” analysts at broker First Futures said in a note.

Only around 6.9% of Chinese steelmakers were operating at a profit by end-September while the average daily hot metal output, a gauge of iron ore demand, slid to a six-month low at 2.34 million tons, Mysteel data showed.

Falling freight rates amid easing energy prices also kept prices of the key steelmaking ingredient under pressure, analysts said.

The benchmark November iron ore on the Singapore Exchange, however, gained 0.93% to $92.3 a ton as of 0153 GMT, after losing 1.2% during China’s holiday break from October 1 to 7, when Chinese bourses were closed.

The contract hit its lowest since September 2024 at $90.95 on October 5.

Coking coal and coke, other steelmaking ingredients, rose 2.73% and 1.23%, respectively.

Steel benchmarks on the Shanghai Futures Exchange lost ground.

Rebar shed 1.06%, hot-rolled coil fell 0.91%, and stainless steel lost 1.28%.