Dalian iron ore futures tumbled more than 6 percent on Monday, while the steelmaking ingredient dropped below $110 in Singapore, weighed by a gloomy outlook for demand in China, where many steel mills are nursing losses and cutting production.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange fell as much as 6.3 percent to 716 yuan ($106.98) a ton, extending its losses to a third session, and touching its lowest since June 23.
On the Singapore Exchange, iron ore’s front-month August contract slumped up to 5 percent to $108.85 a ton, the weakest level since June 23.
Mills in top steel producer China have idled dozens of blast furnaces as stocks piled up after domestic demand weakened, hit by COVID-19 lockdowns and bad weather.
The rising prospect of a global recession also weighed on sentiment, along with China’s deliberate move to curb steel output under its decarbonisation plan.
