In China’s largest steel production hubs, demand failed to recover, causing iron ore futures to fall on Friday. While the U.S. dollar strengthened, iron ore lost value.
On the Singapore Exchange, October iron ore futures fell 0.82% to $103.95 per ton.
On China’s Dalian Commodity Exchange, the most-traded January contract edged up 0.13% to 784.5 yuan ($109.68) per ton.
Steel production an important indicator of iron ore demand—fell by an average of 4.7% during the week of September 4, dropping to 2.29 million tons, the lowest level since late February. With weaker-than-expected demand combining with rising iron ore supply, market sentiment deteriorated and prices came under pressure.
Meanwhile, while iron ore faced challenges, coking coal gained 2.07%, supported by renewed concerns over supply. Construction steel rebar and hot-rolled coil on the Shanghai Futures Exchange mostly declined, as overall demand remained sluggish.
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