SINGAPORE- Iron ore futures extended declines with both benchmarks falling by more than 3 percent in early trade, dragged lower by steel output cuts and growing impatience on the lack of stimulus updates from China.
The most-traded September iron ore on China’s Dalian Commodity Exchange fell 3.5 percent to 827.5 yuan ($115.65) per metric ton.
On the Singapore Exchange, the benchmark September iron ore was down 3.1 percent at $106.35 a metric ton.
“Chinese blast furnaces have slashed capacity utilization and operating rates at pace in response to a confluence of government-mandated restrictions and the imminent arrival of typhoon Doksuri on China’s southern coast,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.
Steel benchmarks on the Shanghai Futures Exchange fell. The most-active rebar contract dipped 0.4 percent , hot-rolled coil rose 0.5 percent , wire rod slid 0.1 percent , and stainless steel dropped 1.4 percent .
Industrial metals were also weighed down by strong US economic data which pushed the USD higher, analysts at ANZ said in a note. – Reuters
