Iron-ore futures prices extended declines on Tuesday, as the big Simandou project in Guinea, west Africa shipped its first ore, raising prospects of more supply at a time when demand in top consumer China is set to decline amid falling steel output.

Brazilian mining company Vale has lowered its forecast for iron ore production in 2026 to 335-345 million tons, according to a company statement.

Australia’s Fenix Resources said on Tuesday it has added a further 240 000 t of iron-ore hedging for 2026

“The Pilbara has always been a place of big ambition, and these locomotives represent the kind of innovation that is needed to keep the region firing.”

Brazilian iron ore miner Vale is positioning itself to meet rising iron ore demand from India

Operations have started at the giant Simandou iron-ore project in Guinea, marking a historic milestone for Africa’s largest greenfield mine and infrastructure development.

The Simandou project in Guinea threatens to further change the dynamics of the iron ore market, which is already facing an uncertain future in terms of demand, writes Bloomberg.

The Simandou deposit has an iron content that averages above 65%, making it one of the highest and most prized grades in the world.