Iron ore futures continued their decline on Wednesday, recording their lowest level in the last four months. While iron ore prices fell, insufficiency in demand continued.
DCIOcv1, the most traded iron ore on the Dalian Commodity Exchange in May, fell 3.98% in daytime trading to $124.29 per metric ton. This level was the lowest closing since October 31, 2023. Coking coal DJMcv1 increased by 6% and coke DCJcv1 increased by 3%.
On the Singapore Exchange, the March iron ore SZZFH4 indicator fell 1.8% to $118.65 per tonne.
Market analysts pointed out that demand was still low after the week-long Lunar New Year holiday in China. In addition, the fact that the improvement in demand did not occur at the expected pace increased the pressure on prices.
Low profitability in many steel mills in China has been observed to hinder the increase in ore demand.
Shanghai Futures Exchange also rose due to the increase in raw material prices. While a slight change was observed in rebar SRBcv1, hot rolled coil SHHCcv1 and stainless steel; wire rod SWRcv1 increased by 1.21%.
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