Iron ore in Dalian has reached the lowest level in more than two weeks, Reuters reported.
Best-selling iron ore for September delivery on China's Dalian Commodity Exchange fell 1.9 percent to 873 yuan per tonne in morning trading after falling to 864 yuan, its lowest level since May 30.
Elsewhere on the Singapore Stock Exchange, July contracts were up 3.5% month on month to $134/ton, with most of the gains trading at $129.85/ton 0.3% higher from $129.85/ton as of 0518 GMT.
Dalian coking coal fell 4.8% and coke 5%.
Various factors such as the rainy season that normally interrupts construction activities, the restrictions imposed to contain the COVID-19 outbreaks, and the low profits of the steel mills have clouded the outlook for China's steel demand.
“Steel stocks are rising and prices are falling. Westpac analysts said the spot price of rebar fell to a 15-month low.
Wednesday's data, which showed signs of recovery in the Chinese economy last month, failed to alleviate demand concerns as pessimism in the futures markets weighed on iron ore spot prices.
The spot price of 62% iron ore in China on Wednesday was estimated at $133/t, a three-week low by consulting firm SteelHome.
Based on data from the China Metallurgical and Steel Association, consulting firm Mysteel said that after the increase in crude steel production in May, the average daily output of Chinese mills from June 1-10 fell by 1.3% compared to the same period in May.
Structural steel rebar fell 1.3% on the Shanghai Futures Exchange, while hot rolled steel coils fell 0.9%. The price of stainless steel rose 0.3%.
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