Iron ore prices continued to slide on Thursday, falling for the seventh time in the past eight sessions.
Futures fell again in overnight trade, hinting that the weakness may continue on Friday.
The benchmark price for 62% fines tumbled by 3.84% to $76.15 a tonne, according to Metal Bulletin, leaving it at the lowest level seen since November 30.
It’s now lost 8.9% from the multi-year peak of $83.58 a tonne struck on December 12.
Similarly large declines were also recorded for both higher and lower grade ore.
Analysts at Metal Bulletin said that limited market activity resulted in softening raw materials prices.
It also noted that the weakness coincided with rumours that restrictions on steel production in northern China had been lifted as severe air pollution in the region earlier in the week cleared.
According to market participants, Metal Bulletin said that “there have been rumours that restrictions on production in northern China have been lifted, which will led to increase of supply from mills”.
“China’s spot rebar prices remained on a downward trend on Thursday as they followed futures lower,” the group said.
Chinese futures also continued to weaken overnight, although the losses in the night session were less severe than those seen during Thursday’s day session.
The May 2017 iron ore future on the Dalian Commodities Exchange closed at 551.5 yuan, a decline of 1.25%. Although weaker, it was above the 542.5 yuan closing level of Thursday’s day session.
The losses in rebar, coke and coking coal futures were also less severe than those recorded in the prior session.
Trade in Chinese futures will resume at Midday AEDT.
- SHFE Rebar ¥3,055 , -1.77%
- DCE Iron Ore ¥551.50 , -1.25%
- DCE Coking Coal ¥1,265.50 , -2.05%
- DCE Coke ¥1,667.50 , -2.57%