Iron ore futures prices fell for a second straight session on Wednesday, weighed down by rising shipments from Australia and Brazil and a seasonal slowdown in demand from top consumer China.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 0.43% lower at 702.5 yuan ($97.97) a metric ton.
The benchmark July iron ore (SZZFN5) on the Singapore Exchange fell 0.25% to $92.75 a ton, as of 0728 GMT.
The total volume of iron ore shipments from top suppliers Australia and Brazil increased to 30.1 million tons during June 16-22, hitting a one-year high, Chinese consultancy Mysteel said.
“Iron ore prices extended recent losses on signs of steady supply,” ANZ analysts said in a note.
ANZ also flagged that construction activity typically declines during the summer, with Chinese imports of iron ore likely to fall further as a result.
Separately, Rio Tinto RIO, RIO, the world’s largest iron ore producer, has received government approvals for its Hope Downs 2 project in Australia.
The project, a joint venture between Rio Tinto and Hancock Prospecting, will have an annual production capacity of 31 million tons.
Rio Tinto said it expects to invest more than $13 billion on new mines, plant and equipment over the next three years.
Meanwhile, the British government is expected to impose tougher-than-expected trade caps on steel as the country attempts to support its domestic industry amid a global oversupply.
Other steelmaking ingredients on the DCE rose, with coking coal NYMEX:ACT1! and coke (DCJcv1) up 0.75% and 1.46%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange fell. Rebar RBF1! and hot-rolled coil EHR1! eased around 0.3%, wire rod (SWRcv1) dropped 0.58%, while stainless steel HRC1! rose 1.25%
Source: Reuters