SINGAPORE- Iron ore futures declined for a fourth straight session on Wednesday, weighed down by weakening steel demand and an increase in port arrival volumes in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.73 percent lower at 747.5 yuan ($101.96) a metric ton.
The benchmark February iron ore on the Singapore Exchange ticked 0.07 percent lower at $96.55 a ton.
Shipments of iron ore into China have increased and port arrival volumes are high, Chinese consultancy Hexun Futures said in a note.
Meanwhile, downstream steel demand has weakened, steel companies have ramped up blast furnace maintenance, and molten iron production has declined further, Hexun said.
“Steel mills have limited inventory replenishment, port clearance volume has decreased… and fundamentals continue to weaken,” Hexun said.
Still, total portside ore stockpiles in China dipped by 1.53 percent from the previous week to 144.6 million tons, as of Jan. 3, according to Steelhome data.
In the rebar market, domestic production and demand are expected to decline further this year, continuing the trend from the previous year, Chinese consultancy Mysteel said.
