Benchmark Singapore iron ore prices dipped on Wednesday, while...

Benchmark Singapore iron ore prices dipped on Wednesday, while Dalian futures contracts hovered near six-week lows, after BHP Group (BHP) reported higher quarterly output of the steelmaking ingredient, adding to supply-side pressures.

BHP, the world's biggest listed miner, kept its full-year guidance unchanged, but said it expects the global economic uncertainty to continue affecting supply chains, energy costs, labour markets and equipment and materials availability.

On Tuesday, Brazil's Vale VALE3.SA reported a 1.1% increase in quarterly iron ore production, while Rio Tinto (RIO) RIO.L posted a 4% rise in shipments in the last quarter compared with the previous three months.

Benchmark November iron ore SZZFX2 on the Singapore Exchange was down 0.5% at $92.20 a tonne, as of 0406 GMT. It hit a 2022 low of $90.30 on Tuesday.

The most-traded January iron ore on China's Dalian Commodity Exchange DCIOcv1 ended a range-bound morning trade 0.3% higher at 687.50 yuan ($95.28) a tonne, after touching a six-week low of 678 yuan in the previous session.

In the spot market, the benchmark 62%-grade iron ore held steady at an 11-month low of $94 a tonne on Tuesday, SteelHome consultancy data showed, amid a weakening demand in top steel producer China. SH-CCN-IRNOR62

"Negative margins and weaker demand prospects are discouraging steel mills to increase production. On the other hand, supply side has been strong," ANZ commodities strategists said in a note.

With a looming global recession and China's economy struggling amid headwinds from its zero-COVID policy and property sector downturn, "many steel mills have stopped production in advance for winter repairs", analysts at Huatai Futures said in a note.

Rebar on the Shanghai Futures Exchange SRBcv1 extended losses to a fourth session, down 0.3%, while hot rolled coil SHHCcv1 also slipped 0.3%. Stainless steel SHSScv1 climbed 1.3%.

Other steelmaking inputs also remained under pressure, with Dalian coking coal DJMcv1 and coke DCJcv1 both shedding 0.4%.