September iron ore futures at the Dalian Commodity Exchange (DCE) closed at 825.50 yuan per ton (equivalent to 113.56 dollars), showing a 3.3% decline as pressures on the key component of steel production increased.
On the Singapore Exchange, August iron ore dropped by 1.8% to 108.4 dollars/ton.
These declines followed the soft statements from the Federal Reserve and investors' expectations of new measures to support the Chinese economy from the crucial meeting on 15-18 July after last week's gains. However, analysts noted that the recent lower-than-expected demand for final steel products indicates that the actual supply-demand situation has not improved, making it challenging to sustain the high price levels reached last week.
Increased port stocks were observed due to weak purchases by steel producers.
Steel indicators on the Shanghai Futures Exchange were mostly on a downward trend. Construction steel dropped by 2.3%, hot-rolled coil by 1.9%, and rebar by 2.3%, while stainless steel saw little movement.
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