News: RIO SGX iron ore slumps to 2022 lows as Vale hikes output, Rio ups shipments

Iron ore futures slumped on Tuesday, with the Singapore benchmark contract hitting the weakest this year as miner Vale SA's higher third-quarter output of the steelmaking ingredient added pressure on already depressed prices.

Brazil's Vale VALE3.SA , one of the world's largest miners, reported a 1.1% increase in quarterly production.

Another major miner Rio Tinto (RIO) RIO.L reported higher iron ore shipments in the last quarter, though it forecast annual volume at the lower end of its outlook amid slowing global demand.

Benchmark November iron ore on the Singapore Exchange SZZFX2 fell 1.4% to $90.30 a tonne.

On China's Dalian Commodity Exchange DCIOcv1 , the most-traded January iron ore ended morning trade 1% lower at 682.50 yuan ($94.81) a tonne, after earlier hitting its lowest since Sept. 7 at 678 yuan.

With China sticking with its stringent zero-COVID rules that dampens overall demand and hopes fading for fresh policy support to shore up the economy, analysts expect iron ore prices to continue languishing below $100 a tonne beyond 2022.

Rio Tinto in a statement accompanying its production results warned of further downside risks to global demand for commodities.

"Fears of recession are emerging on the implementation of aggressive interest rate hikes in the U.S. and Europe, while a weak property sector continues to weigh on China's economy," it said.

On Monday, benchmark 62%-grade iron ore's spot price hit an 11-month low of $94 a tonne, SteelHome consultancy data showed. SH-CCN-IRNOR62

Citing negative steel margins in China, "the expectation for steel mills to actively reduce production continues to increase," Huatai Futures analysts said in a note.

On the Shanghai Futures Exchange, rebar SRBcv1 and hot-rolled coil SHHCcv1 fell 1.4% and 1.3%, respectively, in morning trade. Wire rod SWRcv1 dropped 0.6%, but stainless steel SHSScv1 gained 0.4%.

Other steelmaking inputs also extended losses, with Dalian coking coal DJMcv1 down 4.1% and coke DCJcv1 slumping 3.9%.