Iron ore languishes on supply pressures, weakening demand

Oct 19 (Reuters) - Benchmark Singapore iron ore prices dipped on Wednesday, while Dalian futures contracts languished near six-week lows, after BHP Group BHP.AX reported higher quarterly output of the steelmaking ingredient, adding to supply-side pressures.

BHP, the world's biggest listed miner, kept its full-year iron ore production guidance unchanged, while warning that global economic uncertainty was expected 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.AX, 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 0.7% at $92 a tonne, as of 0702 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 daytime trade 0.4% higher at 688 yuan ($95.24) a tonne, after touching a six-week low of 678 yuan in the previous session.