HANOI: Iron ore futures fell on Thursday, on track for the third consecutive daily decline, due to a slow start to China’s construction season and higher supply from Brazil.
The most-traded May iron ore on China’s Dalian Commodity Exchange traded 1.5% lower at 800 yuan ($110.73) per metric ton as of 0546 GMT. The benchmark April iron ore on the Singapore Exchange was 1.4% higher at $102.70 a metric ton as of 0537 GMT.
Citi analysts said iron ore prices have come under pressure this year given a confluence of factors, including a slow start to China construction season, high Brazil iron ore exports and high exports into China from non-traditional suppliers amid elevated iron ore prices during late 2023. “That said, we expect China steel production to lift from current levels as we head into construction season. China steel consumption growth will likely remain weak but with industry profits up, we expect steel producers to lift output with steel exports to remain high,” they added in a note.
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