Iron ore prices in China fell to the lowest point in the last three weeks due to seasonal low demand and increasing global supply. DCIOcv1, the most traded September iron ore contract on the Dalian Commodity Exchange (DCE), decreased by 2.7% to USD 110.78 per metric tonne. In addition, coke DJMcv1 and coke DCJcv1 decreased by 1% and 2.1%, respectively.
On the Singapore Exchange, iron ore SZZFQ4 for August delivery decreased by 2.34% to close at 104.85 USD per metric tonne.
Prices on the Shanghai Futures Exchange also showed a downward trend. Rebar SRBcv1 and wire rod SWRcv1 decreased by around 1.5%, hot rolled coil SHHCcv1 by 1.64% and stainless steel SHSScv1 by 0.83%.
Seasonal conditions in the country also led to lower ore prices. Severe storms that hit the southern part of China in the summer are currently moving towards the northern provinces.
According to market analysts, the decline in prices was fuelled by concerns that global supply would increase while demand in China would weaken.
In addition, China's property sector also did not reflect encouraging data. According to official data, real estate investments in the country fell by 10.1% in the first half of this year compared to 2023 and home sales fell by 19%.
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