Benchmark iron ore futures in Singapore dipped on Monday, struggling below the $100 a ton mark under the weight of growing shipments from Australia and Brazil combined with the sluggish demand in top steel producer China.
The steelmaking ingredient’s most-traded June contract on the Singapore Exchange shed as much as 1.7 percent to hit $97.05 a ton.
It slumped to $94.20 on Friday after data showed China’s factory activity unexpectedly dipped in April, based on Caixin Manufacturing PMI data, sending shockwaves through the market.
Iron ore on China’s Dalian Commodity Exchange, however, was supported after hitting a five-month low on Friday and with steel benchmarks in Shanghai rebounding following sell-offs.
Dalian iron ore’s most-active September contract was up 2.2 percent at 702 yuan ($101.48) a ton.
Portside offtakes of iron ore in China may continue to contract in tandem with Chinese blast furnace capacity utilization and operating rates this week, Navigate Commodities Managing Director Atilla Widnell said. – Reuters
