Iron ore futures slipped in rangebound trade on Wednesday, as traders gauged the demand impact of China’s top steel-producing city of Tangshan ordering an output cut for the month of July amid deteriorating air quality.
The most-traded September iron ore contract on China’s Commodity Exchange ended morning trade 0.4 percent lower at 818.50 yuan ($113.19) per metric ton.
On the Singapore Exchange, the steelmaking ingredient’s benchmark August contract was down 0.8 percent at $107.95 per metric ton.
Tangshan’s steel production curbs add to worries about iron ore demand prospects this year in top steel producer and metals consumer China, as the country’s post-pandemic economic recovery appeared to have lost momentum in the second quarter.
Signs of rising global iron ore supply is also curbing prices, with Brazil’s exports of the material in June hitting 34.41 million metric tons compared with 32.02 million metric tons in the same month last year.
Iron ore shipments from Australia and Brazil rose by 2.7 million metric tons or 9.9 percent on the week to 29.4 million metric tons over June 26-July 2, consultancy and industry data provider Mysteel reported.
