Iron ore prices declined in China due to decreased demand. Lower than expected demand and the fact that some regions in the country were affected by early rains had a negative impact on iron ore prices.
On the Dalian Commodity Exchange (DCE), the most traded iron ore contract for September on DCIOcv1 fell by 1.91% to USD 117.17 per metric tonne. Coking coal DJMcv1 and coke DCJcv1 were down 3.13% and 1.76%, respectively.
On the Singapore Exchange, the benchmark benchmark for May iron ore SZZFK4 fell 2.88% to settle at USD 112.85 per tonne.
Declines were also dominant on the Shanghai Futures Exchange. Rebar SRBcv1 fell 0.84%, hot rolled coil SHHCcv1 and wire rod SWRcv1 fell 0.68%, stainless steel SHSScv1 fell 2.28%.
The earlier-than-expected onset of rainy weather in China also led to a noticeable decline in steel production. Market analysts also noted that increased stockpiling in the run-up to the May 1 holiday also pushed prices down.
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