SINGAPORE— Iron ore futures fell for a third straight session on Tuesday amid renewed market talk of crude steel production cuts in top consumer China, which has long been plagued by overcapacity.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.76 percent lower at 698.5 yuan ($97.16) a metric ton.
The benchmark June iron ore on the Singapore Exchange was 0.95 percent lower at $96.15 a ton.
On Tuesday, Tang Zujun, vice president of the China Iron and Steel Association, told an industry event in Singapore that China is working to control the expansion of its steel sector to resolve a mismatch between supply and demand.
“Renewed speculation surrounding crude steel production cuts has reignited concerns in the iron ore market,” ANZ analysts said in a note, citing unspecified reports that suggested several mills in Shandong province had started curbing output.
Production cuts for steel could dent demand for iron ore, a key steelmaking ingredient.
Chinese stocks fell on Tuesday, weighed by automakers after Reuters reported that the country’s commerce ministry will meet with industry bodies and automakers to discuss the emerging trend of sales of “used cars” that were never driven.
Still, China’s industrial profits picked up pace in April, official data showed, signalling economic resilience in the face of trade tensions with the United States and lingering deflationary pressures at home.
