BENGALURU: Iron ore futures prices extended losses into a third straight session on Thursday, with the Singapore benchmark falling below the key psychological level of $100 a metric ton, weighed down by resumed talks of steel output curbs in top consumer China.
The benchmark September iron ore on the Singapore Exchange slid 1.18% to $99.75 a ton, as of 0243 GMT, its lowest since July 31.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) slipped 2.38% to 739 yuan ($102.99) a ton, touching the lowest level since April 1.
Market talk that China’s top steelmaking hub Tangshan will impose stringent restrictions on steel output soured sentiment, pressuring ore prices, said analysts. The Development and Reform Commission and the bureau of the Industry and Information Technology in Tangshan did not respond to Reuters’ requests for comment.
Beijing has made it clear that it would continue managing crude steel output this year but has yet to disclose any essential details regarding timing and scale.
“The signs of weakening in the steel market including subdued domestic demand, slowing exports, widening losses among steelmakers dented appetite for raw materials, weighing down their prices,” said Zhuo Guiqiu, an analyst at Jinrui Futures. “Demand in the coming month-the typically peak consumption season-will improve, but we suggest not hold very high expectations.”
Adding downward pressure to the market is growing supply as reflected in increase in iron ore imports in July, high portside stocks and a surge in July iron ore exports from one of the major suppliers Brazil. Other steelmaking ingredients on the DCE were mixed, with coking coal gaining 0.25% while coke dipped 0.4%. Steel benchmarks on the Shanghai Futures Exchange posted further loss.
Rebar shed 0.97%, hot-rolled coil dipped 0.92%, wire rod fell 1.47% and stainless steel edged down 0.22%.
Comments
Comments are closed.