Iron ore futures prices fell for a second straight session on Monday to hit their lowest in multiple months, weighed down by lingering concerns over demand in top consumer China and rising portside ore inventories.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) fell 1.18 per cent by 0215 GMT to 756.5 yuan ($106.21) a metric ton, its lowest level since July 10.
The benchmark December iron ore on the Singapore Exchange was down 0.12 per cent at $101.15 a ton, as of 0205 GMT, hitting its lowest level since September 1.
Several steelmakers in China implemented equipment maintenance amid losses, analysts at First Futures said in a note.
A couple of cities in northern China, including key steel production hub Tangshan, removed pollution-led emergency response on Sunday, analysts at consultancy Mysteel said in a note. Steel mills are typically required to control production during such emergency response.
But losses stemming from resilient raw material prices and softening downstream demand curbed mills’ appetite to resume operations in full scale, said analysts.
Pressuring prices was also rising iron ore inventory at major Chinese ports , which rose by 2.1 per cent from the week before to 138.44 million tons, as of November 7, the highest since March 21, data from consultancy SteelHome showed.
Coking coal and coke, other steelmaking ingredients, slid 2.11 per cent and 1.67 per cent, respectively.
Most steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar shed 0.3 per cent, hot-rolled coil dipped 0.4 per cent and stainless steel was little changed.
The broad weakness in the ferrous market came despite upbeat factory data.
China’s producer price deflation eased in October and consumer prices returned to positive territory, as the government stepped up efforts to curb over-capacity and cut-throat competition among firms.
