The iron ore price slid modestly on Monday, approaching levels not seen in the past three months.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 40 cents, or 0.86%, to $53.30 a tonne. The price is now approaching the $53.14 a tonne level struck during China’s Golden Week holiday, the lowest level seen since late July.
“According to data released by the National Bureau of Statistics (NBS) China’s crude steel output continued to shrink in September, as the countries mills struggle to remain profitable amid a supply glut and economic slowdown in the country,” said Metal Bulletin analysts in their overnight note.
“China produced just over 66 million tonnes of crude steel last month, down 3% from a year earlier. Steel demand has remained sluggish so far this year amid a saturated domestic market and slowing economic growth, market participants said.”
Overnight Chinese iron ore futures did very little, with the most actively traded January 2016 contract on the Dalian Commodities Exchange gaining 0.14% to 370.5 yuan. Trade for Dalian’s day session will resume at 12pm AEDT.