BEIJING — Dalian and Singapore iron ore futures fell to near a four-month low for a third consecutive day on Friday, as muted buying interest from steel mills and a surge in port inventories undermined investor sentiment.
September’s top-traded iron ore on the Dalian Commodity Exchange (DCE) ended intraday trading 4.82 percent lower to a nearly four-month low of 730.5 yuan ($105.96) a ton.
On the Singapore Stock Exchange, the May iron ore benchmark was down 5.82 percent at $108.65 per tonne as of 0708 GMT, the lowest since December 28, 2022.
“Mill buying interest (in spot iron ore shipments) ahead of the upcoming holiday (May 1-3) is weaker than expected, weighing on spot prices and also putting pressure on futures markets,” said Yu Chen, a Shanghai analyst at the consultancy Mysteel.
Iron ore stocks in the 45 major Chinese ports surveyed rose 1.23 million tons, or 1 percent, on the week to 130.35 million tons on the week, Mysteel data showed.
“Friday’s sharp decline (in iron ore prices) resulted from the combined effect of several negative signals. The worse-than-expected 19.2 percent year-on-year decline in housing starts last quarter suggests weak demand for commodities,” said Pei Hao, a Shanghai-based analyst at international brokerage firm FIS. – Reuters
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