Iron ore futures declined on Thursday amid new concerns about China's steel production restrictions and recovery prospects for the local real estate sector. In addition, the flooding in Hebei, the largest steel producing province, adversely affected the market.
On the Singapore Exchange, the reference September contract SZZFU3 for the steelmaking component fell by 4 percent to $99.70/mt after falling to $99.40, its lowest level since June 29.
The top-traded September iron ore on China's Dalian Commodity Exchange fell 3 percent in intraday trading after hitting 808.50 yuan, its lowest level since July 12, to 810.50 yuan (112), finished with $.70)/mt. The declines in the Dalian Stock Exchange were exacerbated by the market discussions regarding the restraint of steel production in China and lowered the prices of other steelmaking materials.
Coking coal DJMcv1 decreased by 5 percent and coke DCJcv1 decreased by 6 percent.
Looking at the Shanghai Futures Exchange, rebar SRBcv1 fell 2.8 percent, hot rolled coil SHHCcv1 1.8 percent, wire rod SWRcv1 2.3 percent and stainless steel SHSScv1 0.8 percent.