BEIJING – Dalian and Singapore iron ore futures extended losses on Thursday, following a more than 10 percent drop in the past month, with the weaker-than-expected China factory activity data and gloomy near-term downstream demand outlook weighing on sentiment.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) fell to 49.5 in April from 50.0 the previous month, missing expectations of 50.3 in a Reuters poll and marking the first contraction since January.
This came after the official manufacturing PMI unexpectedly declined to 49.2 from 51.9 in March, according to data from the National Bureau of Statistics on Sunday.
The steel PMI fell for a second straight month to 45 in April, indicating a slowdown in the sector, CFLP Steel Logistics Professional Committee said on Sunday.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) traded 1.05 percent lower at 707.5 yuan ($102.64) a ton, following a month-on-month drop of 13 percent in April.
The benchmark June iron ore on the Singapore Exchange was 1.21 percent lower at $100.05 a ton, as of 0208 GMT after having fallen by near 18 percent in the past month. — Reuters
