SINGAPORE: Iron ore futures prices dipped for a fourth consecutive session on Wednesday, pressured by subdued demand for the steelmaking ingredient in top consumer China and higher shipments from top producers Australia and Brazil.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.21% lower at 698 yuan ($96.94) a metric ton by 0300 GMT.
The benchmark June iron ore on the Singapore Exchange was 0.18% lower at $95.9 a ton.
China’s crude steel output in 2025 is expected to fall to 968 million metric tons, down 37 million tons from 2024, Mark Ferguson, director of metals and mining research at S&P Global Commodity Insights told a conference on Wednesday in Singapore.
The daily crude steel production of key steel enterprises in May dipped 0.3% month-on-month to 2.2 million tons, consultancy Lange Steel said, citing statistics from the China Iron and Steel Industry Association.
The total volume of iron ore dispatched from Australia and Brazil edged 0.9% higher week-on-week, as of May 25, to reach 27.3 million tons, data from consultancy Mysteel showed.
Mysteel attributed the rise to lifted ore shipments from Australia, who increased shipments to China by 10.4% week-on-week to 17.4 million tons.
Also dampening sentiment was the Brazilian government’s decision to renew 25% tariffs on Tuesday, measures which were initially imposed last year on 19 steel products.
Still, China’s industrial profits picked up pace in April, official data showed on Tuesday, giving policymakers cause for optimism that recent stimulus efforts are helping to keep the economy afloat despite trade tensions with the United States.
Other steelmaking ingredients on the DCE weakened, with coking coal and coke down 0.75% and 0.99%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange lost ground.
Rebar dropped 1%, hot-rolled coil shed 0.74%, stainless steel eased 0.82%, while wire rod climbed 1.96%.
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