Iron ore futures in Singapore fell for the second consecutive session, reaching their lowest point in nearly two weeks due to weakening demand from China, the top consumer. The benchmark September iron ore price on the Singapore Exchange dropped by 0.36% to $98.95 per metric ton, with an earlier low of $98.25 during the session.
In China, the most-traded January iron ore contract on the Dalian Commodity Exchange ended the day flat at 734.5 yuan ($102.39) after an initial rise of over 1%. Analysts noted that weak fundamentals ultimately prevailed despite a brief price recovery driven by short-covering activities.
A north China-based analyst remarked, “How can we expect to see a sustained price rally amid a big reduction in hot metal output?” This sentiment is echoed by reports that 79 steelmakers have initiated equipment maintenance, an increase of 41 since late July, reflecting shrinking profitability.
Prices for coking coal and coke also fell sharply, down 2.98% and 2.35%, respectively. Steel benchmarks on the Shanghai Futures Exchange continued their downward trend, with rebar, hot-rolled coil, wire rod, and stainless steel all recording losses.
Analysts from Galaxy Futures highlighted ongoing pressures in the steel market due to changes in rebar standards, overseas anti-dumping investigations, and signs of a softening manufacturing sector and export market.