Iron ore futures fell more than 3 percent to two-week lows on Wednesday as outlook brightened for supply of the steelmaking raw material to China, the world’s top steel producer.
The most-traded iron ore for January 2021 delivery on China’s Dalian Commodity Exchange declined as much as 3.2 percent to 792 yuan ($117.50) a ton, its lowest since Sept. 30.
Iron ore’s November contract on the Singapore Exchange dropped 3.1 percent to $113.25 a ton, extending losses into a third session.
Iron ore restocking demand from Chinese steel mills has faded after the Oct. 1-8 holidays, analysts said. Benchmark 62 percent iron ore’s spot price settled at $123.50 a ton on Tuesday, compared with $125 the day before, according to SteelHome consultancy.