Iron ore’s winning streak is over.
According to Metal Bulletin, the spot price for benchmark 62% fines slid 0.51% to $56.53 a tonne, bringing to an end its longest winning streak since late December 2015.
Both higher and lower grade ores lost ground during Thursday’s session.
The price for 58% fines fell 0.51%, finishing trade at $38.80 a tonne. There was a similarly small decline for Brazilian ore with 65% Fe content which lost 0.14% to $71.70 a tonne.
Metal Bulletin said the weakness corresponded with continued declines in Chinese steel markets.
“China’s spot rebar prices dropped further on Thursday amid further losses in the futures market,” the group said. “A further drop in the futures market resulted in sparse trading, which weighed on spot rebar prices.”
According to market participants, inventory levels continued to increase as steady supply from steel mills continued despite weakening end demand.
Chinese steel demand tends to weaken in summer as high temperatures and increased rainfall curb construction levels.
Continuing the theme seen throughout much of this week, Chinese commodity futures did very little in overnight trade, providing few clues as to the direction iron ore markets will move today.
Iron ore futures in Dalian closed down 0.35% at 431.5 yuan, while rebar futures traded in Shanghai lost 0.52% at 3,071 yuan.
Despite the declines, both contracts finished higher than Thursday’s day session close.
Trade in Chinese commodity futures will resume at 11am AEST.