BEIJING- Chinese iron ore futures fell, giving up the previous session’s gains, as lower utilization rates at mills and fresh data cast doubt on demand for the steelmaking raw material.
The most-actively traded iron ore futures on the Dalian Commodity Exchange, for May 2020 delivery, declined as much as 1.6 percent to 641 yuan ($91.07) per ton in morning trade. It slid 0.8 percent to 646 yuan by 0330 GMT.
The benchmark steel rebar contract on the Shanghai Futures Exchange SRBcv1, also for May 2020 delivery, declined 0.9 percent to 3,493 yuan per ton.
Weekly utilization rates at 163 steel mills across China dropped to 65.88 percent last week, data compiled by Mysteel consultancy showed, suggesting slowing consumption of the steelmaking ingredient.
China’s National Bureau of Statistics said crude steel output fell to 80.29 million tons in November from 81.52 million tons a month earlier. – Reuters