Production restrictions in the northern regions of China created concerns that demand would decrease in the market and negatively affected iron ore futures. Concern that demand would decrease put pressure on prices. In addition, several cities in northern China initiated a level 2 emergency response in anticipation of heavy air pollution over the weekend.
Iron ore, the most traded January item on China's Dalian Commodity Exchange (DCE), fell 1.14% in daytime trading and finished at 958 yuan per metric ton, its lowest level since November 30. Additionally, coking coal DJMcv1 lost 5.41% and coke DCJcv1 lost 3.05%.
On the Singapore Exchange, benchmark iron ore SZZFF4 for January fell 2.14% to $128.35 per tonne.
There was also a negative atmosphere in the Shanghai Futures Exchange due to falling raw material prices. While rebar SRBcv1 decreased by 1.39%, hot rolled coil SHHCcv1 decreased by 1.04%, stainless steel SHSScv1 decreased by 1.23%; wire rod SWRcv1 increased by 3.52%.
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