en.Wedoany.com Reported - China's iron ore prices fell to a nearly four-month low on June 23, pressured by market expectations that major suppliers will increase shipments before the end of the second quarter, coupled with a seasonal decline in steel demand.
As of 03:00 GMT, the most-traded iron ore futures contract on the Dalian Commodity Exchange (DCE) fell 0.74% to 737 yuan ($108.81) per ton, after hitting 736 yuan earlier in the session, the lowest since February 24. The benchmark July iron ore futures contract on the Singapore Exchange (SGX) fell 0.45% to $97.8 per ton, the lowest since February 25. The contract has breached the psychological threshold of $100 per ton for four consecutive trading days.
Miners are expected to increase shipments this month to meet their targets. Analysts noted that the simultaneous occurrence of rising supply and seasonal demand weakness could lead to port inventory accumulation, putting pressure on prices of this key raw material for the steel industry.
According to a report by analysts at broker Maike Futures, weak macroeconomic data, particularly the first decline in retail sales in three years, has further reinforced market expectations of a downturn in future steel consumption.
Meanwhile, previous supporting factors for iron ore prices are unraveling. Progress in peace talks between the United States and Iran has led to a decline in energy prices and freight costs. Earlier, the Middle East conflict had pushed up energy prices, driving up freight and raw material costs, which supported iron ore prices even during periods of weak demand.
Among other steelmaking raw materials, coking coal and coke continued to fall due to bleak demand prospects, declining by 0.98% and 3.24%, respectively.
Steel products on the Shanghai Futures Exchange broadly weakened. Rebar fell 0.42%, hot-rolled coil fell 0.45%, and stainless steel fell 1.26%.
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