Iron ore prices are pushing lower

Photo by Quinn Rooney/Getty Images

Iron ore spot markets continued to edge lower on Thursday, mirroring another slide in Chinese futures.

According to Metal Bulletin, the price for benchmark 62% fines fell 0.9% to $69.94 a tonne, logging the sixth loss in the past eight sessions. Despite the lopsided ratio, the benchmark is almost unchanged from where it began December.

Both lower and higher grades also lost ground during the session.

58% fines fell 0.05% to $40.03 a tonne while ore with 65% Fe content slid 0.6% to $86.60 a tonne.

The weakness in spot markets followed another poor day for Chinese rebar and iron ore futures.

Rebar futures in Shanghai fell 1.6% to 3,786 yuan, adding to the 2.4% slump seen on Wednesday.

“Construction activities may gradually slow further in the northern part of China [due to adverse weather], so there’s less demand for construction steel,” Richard Lu, analyst at CRU consultancy in Beijing, told Reuters.

The slide in rebar futures also weighed on iron ore, coke and coking coal contracts on Thursday.

Iron ore fell 0.6% to 498 yuan while coke and coking coal lost 4.2% and 3.8% respectively, finishing trade at 1,998 yuan and 1,236.5 yuan.

As seen in the scoreboard below, except for coking coal and coke contracts which rebounded modestly, iron ore and rebar contracts maintained those losses during Thursday’s night session.

SHFE Rebar ¥3,788 , -0.81%
DCE Iron Ore ¥496.50 , -0.90%
DCE Coking Coal ¥1,246.00 , -1.03%
DCE Coke ¥2,015.50 , -0.30%

Trade in Chinese commodity futures will resume at midday AEDT.

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