News: RIO UPDATE 1-Pressure on iron ore mounts as Vale output, Rio shipments rise

	  Dalian iron ore falls to six-week low 

	  SGX iron ore slumps to lowest in 2022 

	  Spot iron ore hits fresh 11-month low 

	  Vale's Q3 iron ore output up 1.1% y/y 

	  Rio's quarterly shipments rise 4% q/q  

(Updates prices)

Dalian iron ore slumped to its weakest in six weeks on Tuesday while futures in Singapore hit the lowest 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 compared with the previous three months.

The most-traded January iron ore on China's Dalian Commodity Exchange DCIOcv1 ended daytime trade 0.4% lower at 687 yuan ($95.57) a tonne, after earlier hitting its lowest since Sept. 7 at 678 yuan.

Benchmark November iron ore on the Singapore Exchange SZZFX2 fell as much as 1.4% to $90.30 a tonne, after which support emerged. It was up 1% at $92.50 by 0705 GMT.

With top steel producer China sticking with its stringent zero-COVID rules that have slowed its economy and hopes fading for more policy support, analysts expect iron ore to continue languishing below $100 a tonne beyond 2022.

Rio 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 in a statement.

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

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

On the Shanghai Futures Exchange, rebar SRBcv1 and hot-rolled coil SHHCcv1 both slipped 0.4%, while wire rod SWRcv1 rose 0.1% and stainless steel SHSScv1 gained 4%.

Other steelmaking inputs also extended losses, with Dalian coking coal DJMcv1 down 3.1% and coke DCJcv1 slumping 2.9%.