# Iron Ore Hits Two-Year Low at $89.25 as China Inventories Top Year-Earlier Levels by 14%

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/42235
Published: 2026-10-28T01:56:42.000Z
Updated: 2026-10-28T01:56:42.000Z
Section: Investing

> China’s crude steel output fell 2.9% in the first nine months of 2026, while iron ore imports rose 4.1%.

Singapore-traded iron ore futures hit $89.25 per metric ton, the lowest level since September 2024, during the Oct. 27 Asian session as traders weighed weaker Chinese steel output this year against expected supply growth. The low came Monday evening ET Oct. 26.

China produced 73.59 million metric tons of crude steel in September, 0.1% more than a year earlier. But production for January through September totaled 724.77 million metric tons, down 2.9% year over year.

Iron ore imports presented a stronger picture. China brought in 109.82 million metric tons in September, up 1.2% from August. Imports for the first nine months reached 954.97 million metric tons, a 4.1% annual increase. Port inventories stood at 152.23 million metric tons in the week through Oct. 23, 14% above the same week in 2025. China buys about 75% of global seaborne iron ore supplies.

Demand typically softens in the fourth quarter as colder weather in northern China slows outdoor construction. Steelmakers have also faced thin margins and lower hot-metal output. China Futures analyst Chu Xinli said mills were “cautious about replenishing raw materials amid high portside ore stocks.”

Horizon Insights chief ferrous analyst Mengtian Jiang forecast that shipments from four major miners, including Rio Tinto and BHP, could increase by as much as 18 million metric tons in the fourth quarter while Guinea’s Simandou mine continues ramping up output. “Iron ore is likely to stay soft through November,” Jiang said.