BEIJING- Iron ore futures tumbled on Monday as traders assessed concerns over weaker-than-expected steel consumption in peak construction season, completion of pre-holiday restocking, and possible output restrictions among mills in winter in top consumer China.
The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) was down 2.03 percent at 844.5 yuan ($115.60)a metric ton.
The benchmark October iron ore on the Singapore Exchange was 3.24 percent lower at $117.25 a ton.
Several factors jointly contributed to the broad weakness in raw materials, said Pei Hao, a Shanghai-based analyst at international brokerage firm FIS.
“It becomes increasingly clear that demand has hit the ceiling amid weaker-than-expected steel sales for September and October, and after the replenishment of raw materials to meet production needs over the upcoming week-long holiday break came to an end,” he added.
China will begin a week-long holiday to celebrate its Mid-Autumn festival and National Day from Sept. 29. -Reuters
