SINGAPORE- Dalian iron ore futures prices declined on Thursday, weighed down by stronger supply of the steelmaking ingredient and a softer global steel market outlook.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.39 percent higher at 746.5 yuan ($104.91) a metric ton.
The benchmark November iron ore on the Singapore Exchange, however, was 0.14 percent higher at $98.85 a ton.
Production reports from major miners have shown they have overcome supply disruptions to raise output in recent months, while steel production is falling, ANZ analysts said in a note.
Australia’s Fortescue the world’s fourth-largest iron ore miner, on Thursday posted a 4 percent rise in its first-quarter iron ore shipments but noted a drop in realized prices.
The readings follow higher-than-expected output estimates from other top miners, including and comes at a time when rivals such as Vale and Rio Tinto are moving to expand supplies.
China’s crude steel output fell to 77.1 million tons in September, declining 6.1 percent month-on-month and dropping 3.1 percent from a year ago, World Steel Association data showed on Wednesday.
