SINGAPORE—Iron ore futures edged lower on Wednesday, posting a third straight monthly decline amid the possibility of steel output cuts in top consumer China, while demand slowed ahead of the Labour Day holiday.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.78 percent lower at 703.5 yuan ($96.81) a metric ton.
The contract lost 3.96 percent this month.
The benchmark May iron ore on the Singapore Exchange was 0.67 percent lower at $97.8 a ton, losing 3.16 percent this month.
Senior Chinese industry figures pointed to the likelihood of steel output cuts despite no official government mandate, pressuring prices of steelmaking ingredients.
Luo Tiejun, vice-chairman of the China Iron and Steel Association (CISA), urged unified action on steel output cuts last week, citing severe pressure on the domestic steel industry sparked by persistent downturn and international trade friction, according to a CISA release.
Meanwhile, Baoshan Iron & Steel, China’s biggest listed steelmaker, said on Monday that a nationwide output cut was likely this year.
“Iron ore extended recent losses as market sentiment weakened ahead of the Labor Day holiday period,” ANZ said, adding that Chinese steel mills have slowed their restocking activities.
