SINGAPORE: Iron ore futures prices retreated on Thursday as supply of the key steelmaking ingredient remained firm amid a weaker steel market outlook, although fresh stimulus for top consumer China’s property sector limited losses.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.44% lower at 755.5 yuan ($104.32) a metric ton. The benchmark December iron ore on the Singapore Exchange was 1.21% lower at $99.35 a ton, as of 0345 GMT.
“Iron ore prices fell as supply continues to grow,” said ANZ analysts in a note. Shipments from Australia’s leading Port Hedland terminal totalled 45.6 million tons in October, bringing this year’s total to the highest level for this period in four years, said ANZ, adding that the Australian government expects exports to increase 1.9% to 908 million tons in 2024.
Mounting stocks of the steelmaking material at China’s major ports stands in stark contrast to the underperformance of imported iron ore prices and demand since the start of this year, said Chinese consultancy Mysteel.
The build in stockpiles comes amid portside traders’ passive restocking, as the iron ore market continuously weakens, Mysteel said.
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