The most traded iron ore contract on the Dalian CommodityExchange fell by 1.6% to $122 per ton. On the SingaporeExchange, the reference iron ore price for April dropped by1.56% to $114.9 per ton.
Factors triggering the price drop include a 0.3% weekly decrease in hot rolled coil production and a 2% increase in stocksat major ports. Analysts are concerned that iron ore demandmay further decline in the coming weeks.
Many steel factories in Yunnan province, southwest China, plan to reduce steel production by around 500,000 tons in March. According to official data, steel production in Yunnan accounts for approximately 2% of China's total in 2023.
Other components of steel production showed mixed performance, with coking coal rising by 0.14% while coke fell by 0.52%.
Steel indicators on the Shanghai Futures Exchange also experienced significant declines. Rebar dropped by 0.62%, hot-rolled coil dropped by 0.44%, and wire rod dropped by 0.60%. Stainless steel, however, gained 1.02% in value.
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