Iron ore for September futures on China’s Dalian Commodity Exchange closed down 2.7% at 1,153 yuan ($178.57) per tonne after four consecutive gains.
The July iron ore contract in Singapore fell 2.3% to $207.75 a tonne.
According to consulting company Mysteel, the spot price of construction steel materials continued to decrease on June 28.
The volume of construction steel traded on June 28, including bars and coils of 237 Chinese traders surveyed by Mysteel, fell 17,608 tons to 193,481 tons due to hot and humid weather.
Spot iron ore prices with 62% Fe content are still above $200/ton, but are down 5.2% from a record high of $232.5/ton reached on May 12.
The most liquid Dalian iron ore contract fell 15.1% during the same period, after Chinese market watchdogs reiterated warnings against hoarding and market speculation.
Bar prices in Shanghai fell 0.5% while hot rolled coil increased 0.1%. Stainless steel fell 0.8%.
The spread between low-grade and high-grade iron ore has widened to a record high, showing that Chinese steel mills are trying to maximize output by using as much quality ore as possible.
In dollar terms, the spread between the three main iron ore grades in recent weeks has widened to its largest since the Argus Commodity Quotation Authority began assessing it in 2013.
Iron ore is one of the commodities with outstanding commodity quality during the recovery from the COVID-19 pandemic. The market has been witnessing strong demand from China, which purchases about 70% of the total volume by sea.
According to Argus assessment, the price of 62% Fe standard iron ore, delivered to North China, has increased by 175% from a low in March 2020 of 79.85 USD/ton to 219.60 USD/ton on today. Monday.
Previously, on May 12, commodity prices rose to a record level of $235.55 per ton, but then fell slightly again when Chinese authorities announced a series of measures to lower prices. market heat.
Source: VITIC/Reuters
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