SINGAPORE — Iron ore futures prices fell for a third consecutive session on Thursday on rising shipments from Australia and Brazil, although gains were capped by a weakening US dollar.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.36 percent lower at 698.5 yuan ($97.51) a metric ton.
The benchmark July iron ore on the Singapore Exchange was 0.37 percent lower at $92.4 a ton.
“Iron ore futures threatened to record a new year-to-date low as robust supplies and lower steel production in China weigh on sentiment,” said ANZ analysts.
According to data from Chinese consultancy Mysteel, inventories of imported iron ore sintering fines have risen for the third straight week to 12.3 million tonnes by June 25.
Meanwhile, consumption of imported sintering fines fell 1.5 percent week-on-week, Mysteel added.
Still, providing some support to prices was a weaker US dollar, which tumbled to multi-year lows as US President Donald Trump’s comments on replacing Federal Reserve Chair Jerome Powell sparked concerns regarding the independence of the Fed.
A weaker greenback makes dollar-denominated assets cheaper for holders of other currencies.
