Iron ore spot markets fell heavily for a second consecutive session on Friday, giving back much of the gains achieved earlier in the week.
After tumbling 3.12% on Thursday, the price for benchmark 62% slid by a further 1.34% to $67.14 a tonne on Friday, according to Metal Bulletin, trimming its gain for the week to 2.13%.
Lower grades were hit even harder than the benchmark with 58% fines falling 1.87% to $46.10 a tonne. Higher grades were the comparative outperformer for the session with ore with 65% Fe content closing down 0.24% at $84.30 a tonne.
“Mills were willing to buy seaborne cargoes at $60-65 per tonne (CFR), but prices of above $70 per tonne made them hesitate,” said Metal Bulletin, citing remarks from an unnamed trader in Southern China.
The weakness corresponded with a renewed build in iron ore inventories held at Chinese ports.
According to data from Shanghai Steelhome, port inventories rose to 139.7 million tonnes last week, up from 139.3 million tonnes in the previous corresponding week. It was the first time since late June that inventory levels increased from a week earlier.
Rebar inventories also swelled, according to data from Mysteel, rising by 123,600 tonnes to 4 million tonnes on Friday.
Whether due to those updates or not, Chinese bulk and rebar futures closed Friday’s night session sharply lower.
Here’s the final scoreboard.
SHFE Rebar ¥3,479 , -0.77%
DCE Iron Ore ¥504.50 , -2.32%
DCE Coking Coal ¥1,221.50 , -1.49%
DCE Coke ¥1,878.00 , -2.19%
Iron ore futures in Dalian were hit particularly hard, extending its losses from the multi-month high of 536.5 yuan a tonne struck earlier in the week to 6%.
Trade in Chinese commodity futures will resume at 11am AEST.