BEIJING: Iron ore futures prices fell for a fourth straight session on Friday and were set for a weekly loss, pressured by the seasonally slowing demand in top consumer China as well as concerns over demand prospects in 2025.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.77% lower at 769 yuan ($105.38) a metric ton. It fell 3.7% for the week.
The benchmark January iron ore on the Singapore Exchange lost 1.24% to $100.55 a ton, as of 0700 GMT, the lowest level since Nov. 25, approaching the key psychological level of $100 a ton. It has fallen 3.2% so far this week.
The continued decline in hot metal output, which is typically used to gauge iron ore demand, put prices of the key steelmaking ingredient under pressure, said analysts.
Average daily hot metal output slid for a fifth straight week, data from consultancy Mysteel showed. Output fell by 1.3% week-on-week to its lowest level since early October at 2.29 million tons in the week to Dec. 20, per data.
However, that was 1.2% higher than the same period in 2023, Mysteel data showed, suggesting demand was resilient, limiting the decline in prices.
Additionally, the signal that the US Federal Reserve will slow down rate cuts in 2025 supported the dollar, weighing on the greenback-priced commodities.
Other steelmaking ingredients on the DCE advanced, with coking coal and coke up 0.61% and 0.97%, respectively. Most steel benchmarks on the Shanghai Futures Exchange retreated. Rebar nudged down 0.27%, hot-rolled coil fell 0.47%, wire rod slid 3.19% while stainless steel added 0.08%.
China’s steel demand is forecast to fall 1.5% in 2025 and drop 4.4% in 2024 from the year before, the state-backed China Metallurgical Industry Planning and Research Institute (MPI) said on Friday.
Comments