Iron ore futures prices tumbled further on Friday to a more than six-month low, on track for a weekly drop of more than 10 percent , amid sluggish spot buying appetite and bleak demand prospects in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 3.46 percent lower at 781.5 yuan ($108.61) a metric ton, the lowest since Aug. 22, 2023. It posted a weekly drop of 11 percent .
The benchmark April iron ore on the Singapore Exchange was 4.1 percent lower at $99 a ton, the lowest since June 1. It has plunged 14 percent on-week so far this week.
“Weaker demand prospects are increasing possibilities of steel production cuts… less steel production means lower demand for iron ore,” analysts at ANZ bank said in a note.
Risks of faltering ore demand loomed after a few provincial steel associations issued statements to either call for a steel output cut or only vaguely propose local market players to jointly promote the healthy development of the steel industry, according to consultancies Mysteel and Lange Steel.
