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Iron Ore Slips Toward $100 As Chinese Mills Cut Runs And Port Stockpiles Swell
(MENAFN- The Rio Times) Iron ore drifted lower in Asian trading, with the 62% Fe CFR China benchmark hovering around $101–103 a tonne after last week's steady slide.
Futures in Singapore marked fresh multi-month lows, while Dalian's most-traded contract dipped near 760 yuan, signaling fragile sentiment as Chinese steelmakers trim output and margins remain thin.
The past seven days told a clear story of supply meeting softening demand. China's seaborne purchases stayed robust through October, but inventories at major ports climbed to the highest since early spring, a sign that ore is arriving faster than steel is leaving mills.
Several producers entered maintenance to stem losses, and the removal of short-term pollution curbs in Hebei failed to spark immediate restarts-an implicit vote for discipline until orders improve.
Macro signals were mixed. China 's October inflation data edged in the right direction, yet downstream steel demand-construction and manufacturing-has not responded in kind.
That gap kept traders focused on the near-term balance sheet: plentiful ore, cautious blast-furnace runs, and a ferrous complex that has turned risk-off across ore, coke, and coking coal.
Technicals reinforce the caution. On the four-hour chart, prices hug the lower Bollinger band under a falling 20/50-EMA stack; RSI has bounced from oversold but stays sub-50, and MACD remains negative.
The daily view shows a roll-over since late October, with momentum below zero and RSI near the high-30s. A dense resistance shelf sits around $104–105; support clusters near the 200-day zone around $101.
A decisive close back above $105 would be the first sign that bears are losing grip. For now, the market is rewarding prudence. Without firmer end-use steel orders or a plateau in port stocks, iron ore likely trades a $100–105 range with a downside skew.
Watch this week's inventory prints and any hints of improved mill margins. If those turn, the tape can stabilize quickly; if not, the psychology around the $100 handle will do the talking.
Futures in Singapore marked fresh multi-month lows, while Dalian's most-traded contract dipped near 760 yuan, signaling fragile sentiment as Chinese steelmakers trim output and margins remain thin.
The past seven days told a clear story of supply meeting softening demand. China's seaborne purchases stayed robust through October, but inventories at major ports climbed to the highest since early spring, a sign that ore is arriving faster than steel is leaving mills.
Several producers entered maintenance to stem losses, and the removal of short-term pollution curbs in Hebei failed to spark immediate restarts-an implicit vote for discipline until orders improve.
Macro signals were mixed. China 's October inflation data edged in the right direction, yet downstream steel demand-construction and manufacturing-has not responded in kind.
That gap kept traders focused on the near-term balance sheet: plentiful ore, cautious blast-furnace runs, and a ferrous complex that has turned risk-off across ore, coke, and coking coal.
Technicals reinforce the caution. On the four-hour chart, prices hug the lower Bollinger band under a falling 20/50-EMA stack; RSI has bounced from oversold but stays sub-50, and MACD remains negative.
The daily view shows a roll-over since late October, with momentum below zero and RSI near the high-30s. A dense resistance shelf sits around $104–105; support clusters near the 200-day zone around $101.
A decisive close back above $105 would be the first sign that bears are losing grip. For now, the market is rewarding prudence. Without firmer end-use steel orders or a plateau in port stocks, iron ore likely trades a $100–105 range with a downside skew.
Watch this week's inventory prints and any hints of improved mill margins. If those turn, the tape can stabilize quickly; if not, the psychology around the $100 handle will do the talking.
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