Dalian iron ore futures hit a year’s low on Wednesday as demand worries intensified due to China’s curbs on its steel output and a worsening liquidity crisis in the country’s property sector.
The most-traded January iron ore contract on the Dalian Commodity Exchange slumped as much as 7.8 percent to 518.50 yuan ($81.04) a ton, the steelmaking ingredient’s weakest level on the Chinese bourse since Nov. 9, 2020.
On the Singapore Exchange, the most-traded December contract fell as much as 6.9 percent to $84.60 a ton.
“(China’s steel) production restrictions have suppressed expectations for winter (iron ore) storage and replenishment,” analysts at Zhongzhou Futures Co Ltd wrote in a note. “The scope of limited production during the heating season has expanded, (while) blast furnace maintenance has increased.” — Reuters
