信德海事网-专业海事信息咨询服务平台
  >  COMMODITIES

Iron ore tumbles over 5% as China port stocks hit 4-month peak

Iron ore prices tumbled more than 5% on Monday, with the Dalian benchmark hitting its lowest in seven months, on rising portside stocks of the steelmaking ingredient in China due to increased shipments and weak domestic demand.
 
The most-traded iron ore for January delivery on China's Dalian Commodity Exchange DCIOcv1 dropped as much as 5.6% to 731 yuan ($113.26) a tonne, its weakest since Feb. 4.

Iron ore's most-active October contract on the Singapore Exchange SZZFV1 shed as much as 5.1% to $135.70 a tonne, its lowest since Aug. 24.
 
Imported iron ore stocked at ports in China, the world's top steel producer, climbed to 131.40 million tonnes last week, the highest since end-April, SteelHome consultancy data showed. SH-TOT-IRONINV
 
Spot iron ore in China tumbled to $145.50 a tonne on Friday, the weakest since Aug. 23, from $156 a week earlier, SteelHome data showed. SH-CCN-IRNOR62
 
Iron ore prices have fallen under the weight of “a monstrous 4-million tonne” increase in weekly shipment from Australia in the last week of August, according to Atilla Widnell, managing director at Singapore-based Navigate Commodities.
 
Chinese iron ore producers' plan to increase their domestic output by more than 100 million tonnes between 2021 and 2025 also added some pressure on prices, he said.
 
Some industry data showing China's weekly steel output had increased may have also prompted the continued iron ore sell-off, Widnell said.
 
“Increasing steel output occasionally has a counter-intuitive effect on iron ore prices given that retail investors sell the feedstock as they expect steel margins to compress,” he said.

In sharp contrast, other steelmaking ingredients extended their record-setting rallies on supply concerns.
 
Dalian coking coal DJMcv1 jumped 7.7% to a life-high 2,818 yuan a tonne. Coke DCJcv1 climbed 4.8%.
 
Rebar on the Shanghai Futures Exchange SRBcv1 rose 1.5%, while hot-rolled coil SHHCcv1 gained 1.8%. Stainless steel SHSScv1 gained 6.8% to hit a five-week high.

Source: Reuters

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.

Please Contact Us at:

media@xindemarine.com


Ctrl+D 将本页面保存为书签,全面了解最新资讯,方便快捷。