BEIJING- Chinese iron ore futures fell for a fourth consecutive session, down more than 5 percent to their lowest level in nearly three weeks, on prospects of more imports of the steelmaking ingredient and as demand eased on the government’s decision to cut production.
“The government has a relatively strong determination to control steel output this year, which could affect demand for raw materials,” Li Wentao, an analyst with Tianfeng Futures, said.
Meanwhile, China’s imports of iron ore are seen to increase this month, leaving possibilities for an oversupply, Li added.
The most-traded iron ore futures on the Dalian Commodity Exchange, for September delivery, plunged as much as 5.1 percent to 1,141 yuan ($176.49) per ton. They were down 4.2 percent.
Spot prices of iron ore with 62 percent iron content for delivery to China declined $4 to $217.5 a ton on Wednesday, data from SteelHome consultancy showed.
Dalian coking coal slipped 0.6 percent to 2,072 yuan per ton and coke futures dipped 0.5 percent to 2,722 yuan a ton.
Steel prices on the Shanghai Futures Exchange tracked the drop in raw material rates.
Construction-used steel rebar, for October delivery, fell 1.3 percent to 5,514 yuan a ton. – Reuters
