The price of iron ore for September delivery fell 5.6% to 999 CNY (equivalent to 154.54 USD)/ton during the session. Iron ore prices ended the session down 4.8% at 1,007 yuan, the lowest since April 12.

China’s iron ore futures traded on August 5, down nearly 5% to a near four-month low, as domestic consumption remained sluggish ahead of steel production controls.

Iron ore futures were the most active on the Dalian Commodity Exchange, for September delivery, down 5.6% to 999 CNY ($154.54) a tonne during the session. Iron ore prices ended the session down 4.8% at 1,007 yuan, the lowest since April 12.

Domestic consumption (for iron ore) is weakening significantly … due to different perceptions of steel production cuts.
Under current strictly implemented steel production controls, high iron ore prices are not supported.
Iron ore price 62þ spot for China stood at 185.5 USD/ton traded on August 4.
Other steelmaking materials on the Dalian bourse all rose, with coking coal up 2.0% to CNY 2,326 a tonne and coke futures up 1.8% to CNY 2,945 a tonne.

The price of steel bars traded on the Shanghai Futures Exchange for October delivery increased by 0.3% to 5,373 CNY/ton.

Hot rolled coil futures, used in cars and home appliances, fell 0.1% to CNY5,733 a tonne.
Stainless steel futures in Shanghai fell 0.8 percent to CNY 18,785 a tonne.
China, the world’s largest coal producer and consumer, will extend the trial operation of 15 mines with a total annual production capacity of 43.5 million tons for another year to boost supply.

Source: VITIC/Reuters

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