BEIJING: Iron ore futures prices fell for a second consecutive session on Wednesday, undermined by weak near-term demand from top consumer China and growing concerns about consumption in the reminder of the year.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) declined 0.46% to 764 yuan ($106.37) a metric ton by 0211 GMT.
The benchmark September iron ore on the Singapore Exchange was 0.15% lower at $102.7 a ton, as of 0216 GMT. “It’s difficult to see a substantial upward drive amid a persistent downturn in the steel market,” analysts at First Futures said in a note.
Moreover, mounting doubts over whether China’s steel exports will maintain the strong momentum in the second half of the year weighed on buying appetite for iron ore.
Traders are concerned that a flood of steel exports from China could ease in coming months, putting a break on strong demand for the steelmaking raw material, ANZ analysts said in a note.
“We have been closely monitoring the change in steel exports and the scale of steel output cut this year,” said an East China-based steel producer, requesting anonymity as he is not authorised to speak to media.
Also, China’s domestic steel market has not fully shrugged off pressure caused by a wave of sell-off activities last month following a requirement to switch to the new mandatory national standards.
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