BEIJING/NINGBO: Chinese iron ore futures fell for a third straight session on Wednesday, pulled down by higher shipments from mainstream miners and as mills eased utilisation rates on prospects of lower demand during winter. Iron ore shipments from Brazilian miners jumped 33.3% on an annual basis in mid-September, research house Navigate Commodities wrote in a note, adding that Australian consignments were 3.3% higher during the same period.
The most-traded iron ore futures contract on the Dalian Commodity Exchange, for January delivery, slipped as much as 2.7% to 751 yuan ($110.58) per tonne. It closed 0.7% lower at 767 yuan. Steel mills typically slow down production in September and October, said Liu Xinwei, chief researcher from Sublime China Information.
"Steel firms normally churn out fewer products in recent months as consumption will decline in winter, which will affect demand of raw materials," according to Liu. Spot prices of iron ore with 62% iron content for delivery to China dipped to $120 per tonne on Tuesday, according to consultancy SteelHome.
Construction steel rebar on the Shanghai Futures Exchange inched up 0.2% to 3,542 yuan a tonne. Hot-rolled coils rose 0.4% to 3,666 yuan per tonne. Stainless steel futures, for November delivery, ended up 0.4% to 14,000 yuan per tonne. Dalian coking coal increased 0.2% and coke fell 0.8%.
It will take time for Chinese consumption to return to normal growth, Premier Li Keqiang said on Tuesday, adding that China will maintain financial support for the real economy. China said on Wednesday it will boost investment in strategic industries and accelerate development of new materials to ensure stable supply chains for aircraft, microelectronic manufacturing and deep-sea mining sectors.
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