SINGAPORE/BEIJING- Dalian iron ore futures declined for a third straight session on Wednesday due to lingering concerns over near-term demand in top consumer China.
The most-traded May iron ore on China’s Dalian Commodity Exchange ended morning trade 1.45 percent lower at 916.5 yuan ($127.64) per metric ton, following a drop of more than 5 percent the day before.
It regained some ground after touching a low of 893.5 yuan a ton earlier in the session, the lowest level since Nov. 1, 2023.
Pressuring prices of the key steelmaking ingredient is growing supply at a time when a recovery in demand has been slower than expected after the week-long Lunar New Year holiday break, said analysts.
“Supply from major producers Brazil and Australia so far has hovered at a relatively high level compared to past years; the weather so far this year in major production hubs is better than the past five-year average,” said Pei Hao, a Shanghai-based analyst at international brokerage FIS.
“Weak profitability at many steel mills has limited an increase in ore demand in the near term.”
