Iron ore futures continued their losses and fell below $100 amid expectations that steel production in China fell last month.
Prices in the Singapore market continued their decline for the fifth day as the world's largest steel producer China increased its efforts to limit annual production volumes. Along with this move, iron ore inventories at Chinese ports reached their highest level since April 2019, a sign of slowing demand.
According to a survey by research firm Mysteel, which is based on 247 blast furnaces and 71 electric arc furnaces, daily crude steel production in China fell to its lowest level since March 2020 in the last 10 days of October.
Mysteel emphasized that while local governments are frequently asked to reduce production, low steel demand and slackening prices reduce the production desire of producing companies.
The China Iron and Steel Association had previously stated that steel production fell in early and mid-October.
Iron ore futures fell 7.2 percent in the Singapore market to $93.05 a tonne. In the Dalian market, prices have regressed to the daily lower limit.
Comments
No comment yet.