(Bloomberg) -- Iron ore fell as investors’ attention shifted from China’s plans for stimulus and the outlook for demand to prospects for global supplies, with a procession of leading miners due to deliver quarterly production reports.
Futures dropped to near $107 a ton in Singapore, after gaining more than 3% over the prior two sessions as China detailed more plans to support the economy in a series of briefings. This week, Australia’s BHP Group Ltd. and Rio Tinto Group turn in their figures, as will Brazil’s Vale SA.
Iron ore has been in retreat for most of 2024 as a slowdown in China, including a drawn-out property crisis, hobbles domestic demand for steel. The industry’s challenges have forced mills to reduce output, while ramping up overseas sales. In recent weeks, Beijing has unveiled fresh moves to buttress growth, with monetary and fiscal initiatives, although details of the latter remain sketchy.
At the same time, leading miners have been beefing up supplies of iron ore, with their operations safeguarded by costs per ton that remain far below current spot levels. Exports from Brazil have been particularly marked, with shipments in September the second-highest on record for that month.
Iron ore lost as much as 1% to $106.50 a ton, and traded at $107.40 at 10:02 a.m. in Singapore. They have retreated by almost a quarter this year, making the steel-making staple one the 2024’s worst performing major commodities. In China, yuan-priced steel contracts declined.
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