China's Iron ore prices have returned to declines after reaching peak levels

China's Iron ore prices have returned to declines after reaching peak levels

As of September 22, 2023, on the Singapore Exchange, quotations of the underlying October futures decreased by 1.9% compared to the price a week earlier – to $121.2/t.

iron ore futures on the Dalian Commodity Exchange fell to $119.4/t, and on the Singapore Exchange – to $121.2/t During September 15-22

January iron ore futures, the most traded on the Dalian Commodity Exchange, for the period September 15-22, 2023, fell by 1.3% compared to the previous week – to 871.5 yuan/t ($119.38/t ).

Iron ore prices reversed their uptrend last week, but still remain at high levels. Quotes have started to fall amid growing domestic supply of raw materials in China, while demand remains stable under the influence of uncertainty about sufficient demand for finished steel from the construction industry.

A sharper drop in prices is avoided thanks to still low raw material stocks at steel mills and the need to replenish them ahead of China’s National Day (September 26-October 6).

Iron ore prices are to hold above $115/t until the end of September approximately, but with the start of the national holiday demand for the raw material will again slow down and put pressure on prices. Further prospects will depend on the effectiveness of the authorities’ actions to support and stimulate the economy.