Core Viewpoint - Iron ore prices have fallen below $100 a ton due to slowing demand in China and increasing supply, leading to a significant rise in inventories [2][4]. Supply and Demand Dynamics - Iron ore futures for 61%-content ore decreased by 1.3% to $99.35 a ton, marking a fourth consecutive weekly drop, the longest losing streak since June [2]. - The supply-demand fundamentals for iron ore remain weak, with slower-than-expected hot-metal output at Chinese mills and the end of supportive restocking activities [3]. - Chinese steel mills are reducing output on an annual basis, while miners in Australia and Brazil are increasing ore production, contributing to rising inventories [4]. Inventory Levels - Port stockpiles in China rose for the 10th consecutive week, increasing by 0.6% to 160 million tons, the highest level since 2022 and nearing the record set in 2018 [5]. - The increase in stockpiles may also be influenced by a pricing dispute between BHP Group and China Mineral Resources Group Co. [5]. Price Forecasts - BMI, a Fitch Solutions company, projects that iron ore prices will average $95 a ton this year due to elevated inventories, healthy mine output, and potential steel-output curbs [7]. - Goldman Sachs anticipates that iron ore prices may decline once the dispute between BHP and CMRG is resolved and new low-cost supply comes online [7].