BEIJING- Singapore iron ore futures fell below the $100-per-metric-ton key psychological level on Friday as some traders liquidated long positions on faltering demand, after most steelmakers in top buyer China completed pre-holiday restocking of feedstocks.
The benchmark February iron ore on the Singapore Exchange was 2.57 percent lower at $98.3 a ton, the lowest since Nov. 18.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.18 percent lower at 764 yuan ($104.66) a ton, the lowest since Dec. 30.
Both benchmarks were on track for a third straight weekly fall, shedding 0.2 percent and 0.5 percent, respectively, mainly dragged down by seasonally diminishing demand for the key steelmaking ingredient. Dalian iron ore fell 16 percent in 2024 and Singapore benchmark dropped 18.5 percent.
Average daily hot metal output among steelmakers surveyed fell for a seventh straight week, down 1.2 percent to the lowest since late September at 2.25 million tons, as of Jan 2, data from consultancy Mysteel showed.
“Some bulls closed positions as downside risks mounted with more steel mills recently starting equipment maintenance, which weighed on buying appetite for feedstocks including iron ore,” said Steven Yu, senior analyst at Mysteel.
