BEIJING – Iron ore futures lost steam on Wednesday for a fifth consecutive session, with the Singapore benchmark at the lowest level in nearly three weeks, as the demand outlook was clouded by a weakening steel market and a lack of fresh stimulus in top consumer China.
The benchmark February iron ore on the Singapore Exchange was 1.97 percent lower at $135.05 a metric ton, hitting the lowest since Dec. 21, 2023.
The most-traded May iron ore on China’s Dalian Commodity Exchange (DCE) closed morning trading 1.56 percent lower at 976.5 yuan ($136.13) a ton, the lowest since Jan. 2.
Pressuring the upstream ore market is a widening loss among steel mills as well as a lack of confidence amid a period when policymakers typically will not announce more stimulus-related policies.
“Weighing on the market are negative signs that steel products are piling up amid a seasonally sluggish season, steelmakers are suffering losses and there is no new fresh stimulus,” said Zhuo Guiqiu, a Shenzhen-based analyst at Jinrui Futures.
A drastic and significant price drop, however, is unlikely in the near term as there is no dramatic change in fundamentals, said Chu Xinli, a Shanghai-based analyst at China Futures.
“It’s more likely prices will move within a relatively tight range until a clear direction shows up,” Chu added.
