Iron ore futures fall to five-week low on higher global supply
The most-traded January Dalian contract touched 700 yuan, its lowest since Aug. 20, while the Singapore benchmark fell 0.37%.
By Emily Ou Yong SINGAPORE, Sept 28 (Reuters) — Iron ore futures fell to a five-week low on Monday, as ample global supply, rising Chinese port inventories and steel mills cutting output on deepening losses pressured prices. 92) a metric ton, as of 0325 GMT. Earlier, it touched 700 yuan, its lowest since August 20. 75 a ton.
17 million tons last week, data from consultancy Steelhome showed. 36 million tons last week, data from consultancy Mysteel showed. Further cuts to hot metal output are possible as mill profits have plunged and industry-wide production control initiatives have fueled expectations of supply contraction, analysts from broker Hualian Futures said in a note. Overseas shipments have rebounded to high levels for this time of year while domestic port arrivals are gradually recovering, easing supply-side disruption, said the analysts.
With ample global iron ore supply and port inventories expected to remain high, iron ore prices are likely to remain weak until late October, said analysts from Galaxy Futures in a note. 2 million tons, World Steel Association data showed on Thursday. 61%, respectively. Shanxi Governor Lu Dongliang presided over a meeting on Saturday urging efforts to speed the resumption of coal mine production and reverse the decline in output, while keeping to safety requirements.
Steel benchmarks on the Shanghai Futures Exchange were mixed. 36%. com;)