BEIJING- China’s iron ore futures plunged as much as 3.1 percent in early trade on Monday, cooling for a fourth session as demand declined amid a weakening manufacturing sector.
The most-traded iron ore futures on the Dalian Commodity Exchange, for January 2020 delivery, fell 2.1 percent to 594 yuan ($84.93) a ton as of 0229 GMT.
China posted its biggest decline in producer prices in more than three years in October, dragged down by cooling demand in the manufacturing sector and a knock from the Sino-US trade friction.
The construction steel rebar on the Shanghai Futures Exchange, dived 1.3 percent to 3,368 yuan a ton, the lowest since mid-October.
Hot-rolled coil, used in cars and home appliances, for January delivery, faltered 1.1 percent to 3,318 yuan.
“The ferrous market is on the weakest front as steel mills are destocking for the end-of-year financial accounting,” said Darren Toh, data scientist with Singapore-based steel and iron data analytics company Tivlon Technologies.
Steel inventories in China stood at 8.9 million tons as of Nov.7, the lowest level since Jan.11, according to data compiled by MySteel consultancy. – Reuters