Iron Ore Prices Drop Amid Oversupply and Weak Chinese Demand
Rising shipments from Brazil and Australia pressure global prices as Chinese steelmakers cut back on purchases.
Iron ore prices fell this Tuesday. The most actively traded contract on the Dalian Commodity Exchange closed at 671 yuan per ton. The decline reflects pressure from high supply combined with weak consumption in China.
Data shows that iron ore shipments from Brazil and Australia rose 1.3 percent week-on-week. The total volume reached 27.9 million tons in early November. This increase in product availability contributes to the devaluation in futures markets.
Steelmakers in China remain cautious about restocking. Profit margins in the sector remain low and steel consumption in the manufacturing industry has cooled. The situation is worsened by steel inventories that remain at high levels.
Other steelmaking inputs also lost value in the recent session. Coking coal and coke recorded drops of 2.53 percent and 1.57 percent respectively. This movement follows the gradual resumption of operations at coal mines in Shanxi province.
The Chinese steel market is facing a period of seasonally weak demand. Analysts note the absence of new government support for the sector this month. Benchmark indices for rebar and other steel products followed the downward trend.
Spotted an error? Write to suporte@criptoico.com.br.
