BEIJING- Iron ore futures in China dropped for the second straight session, dented by intensifying tensions between China and the United States, though analysts expect demand for the steelmaking ingredient to remain resilient.
The most active iron ore futures on the Dalian Commodity Exchange, for September delivery, dropped 1.2 percent to 889 yuan ($127.58) per ton. The contract fell as much as 2.2 percent earlier in the session.
“The drop in prices should be driven by macro sentiment such as China-US relations, which could hurt some steel-related exports,” said Cai Biyu, analyst with GF Futures, adding that fundamentals for iron ore are still stable.
Spot prices for iron ore with 62 percent iron content for delivery to China was unchanged from previous trading day at $118.5 per ton on Friday.