By Reuters

Copyright brecorder

SINGAPORE: Iron ore futures prices edged lower across major exchanges on Wednesday, weighed by rising shipments from top producer Brazil and a cautious steel demand outlook.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.25percent lower at 803.5 yuan (USD113.06) a metric ton, as of 0303 GMT.

The benchmark September iron ore on the Singapore Exchange was 0.11 percent lower at USD105.6 a ton.

According to broker Galaxy Futures, manufacturing steel consumption grew 7 percent year-on-year during the first half, but end-use steel demand dropped off quickly in the third quarter,with August’s year-on-year growth in domestic end-use steel consumption likely to be the lowest for 2025.

Globally, iron ore shipments rose in the third quarter, with Brazil accounting for the majority.

Still, consultancy Mysteel noted that imported iron ore prices in China increased last week, driven by stronger demand from North China steelmakers after production curbs were lifted and normal operations resumed.

Hot metal production, a gauge of iron ore demand, increased by 117,100 tons month-on-month to 2.4055 million tons, said

Chinese broker Everbright Futures in a note on Wednesday. Thyssenkrupp Steel Europe, Germany’s biggest steel producer, has received a non-binding takeover offer from Jindal Steel International, part of the Indian Naveen Jindal Group.

Jindal Steel has pledged significant investment and plans to convert the unit into Europe’s leading low-emission steelmaker.

Other steelmaking ingredients on the DCE were steady, with coking coal trading flat and coke up 0.09 percent,following gains of more than 5 percent for both in the previous session.

Spot checks on overproduction at coal mines are likely to continue, providing significant support for coking coal prices, Galaxy added in the same note.

Steel benchmarks on the Shanghai Futures Exchange all decreased.

Rebar fell 0.35 percent, hot-rolled coil lost 0.59percent, wire rod dipped 0.57 percent and stainless steel eased 1percent.