BEIJING – Dalian and Singapore iron ore futures fell for a third straight session on Friday to near four-month lows, as subdued buying interest from steel mills and a pick-up in port inventories undermined investor sentiment.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) ended daytime trading 4.82 percent lower at a near four-month low of 730.5 yuan ($105.96) a ton.
On the Singapore Exchange, the benchmark May iron ore was 5.82 percent lower at $108.65 a ton, as of 0708 GMT, the lowest since Dec. 28, 2022.
“Mills’ buying interest (in spot iron ore cargoes) ahead of the upcoming (May 1-3) holiday is weaker than expected, weighing on spot prices and sending pressure to futures markets as well,” said Yu Chen, a Shanghai-based analyst at consultancy Mysteel.
Iron ore inventories at the 45 major Chinese ports surveyed increased by 1.23 million tons, or 1 percent, on the week to 130.35 million tons in the week, as of April 21, Mysteel data showed.
“The drastic fall (in iron ore prices) on Friday resulted from the joint impact of several negative signs. The worse-than-expected 19.2 percent year-on-year fall in new housing starts in the past quarter suggested weak demand for raw materials,” said Pei Hao, a Shanghai-based analyst at international brokerage firm FIS. – Reuters
