Shanghai- Iron ore futures dipped on Monday, weighed down by concerns over demand prospects in top consumer China following steelmakers’ production cuts that reduced the ore’s demand.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.83 percent lower at 778 yuan ($107.12) a metric ton.
Beijing has announced its intent to curb steel production in China due to overcapacity.
While there is no official release yet, some steelmakers have voluntarily reduced production in anticipation of the formal announcement, therefore curbing demand for iron ore.
Furthermore, the worries over demand prospects, intensified by the escalation of a global trade war sparked by the fresh US tariffs, are also pressuring prices.
Other steelmaking ingredients on the DCE faltered, with coking coal and coke losing 1.2 percent and 1.79 percent, respectively.
Most steel benchmarks on the Shanghai Futures Exchange fell. Rebar shed 0.53 percent, hot-rolled coil slipped 0.65 percent and wire rod eased 0.44 percent, while stainless steel gained 0.15 percent.
The Singapore Exchange is closed on Monday for a public holiday.
