BEIJING – Singapore and Dalian iron ore futures extended declines, dragged down further by renewed fears of a banking crisis in the United States and lingering worries of diminishing demand amid reduced production by some Chinese steelmakers.
Prices regained some lost ground but ended up with losses in afternoon trading after having refreshed five-month lows in the morning.
Shares of US regional banks resumed their slide this week after the collapse of First Republic Bank, the third mid-sized lender to fail in two months.
“Ongoing turmoil in US regional banks continued to dominate headlines and markets overnight,” analysts at ANZ bank said in a note.
Meanwhile, iron ore demand continued to shrink with the daily hot metal output among the surveyed 247 steel mills declining by 1.3 percent week-on-week to 2.41 million tons in the week as of May 5, data from consultancy Mysteel showed. – Reuters
