Iron ore for September delivery on the Dalian Commodity Exchange ended morning trading down 1.6 percent at 724 yuan/tonne ($104.74). On the Singapore Exchange, June-dated iron ore decreased as much as 2.7 percent to $102.55/tonne, its lowest level since May 15.
The slower increase in house prices in China and downward data showing a sharp decrease in housing investment and sales last week increased doubts about the strength of the recovery in the housing sector. Analysts expect steel production in China to decrease in the coming months due to a lack of growth in new construction activity. According to analysts, this will put pressure on iron ore demand as supply disruptions ease.
In Dalian, coking coal and coke decreased by 3.4 per cent and 3.1 per cent, respectively. On the Shanghai Futures Exchange, rebar decreased 1.8 percent, hot-rolled coil 1.7 percent, wire rod 2.5 percent and stainless steel 0.8 percent.
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