BEIJING/MANILA: Benchmark iron ore futures in China fell on Friday and headed for a fourth straight weekly decline as industrial demand remained sluggish due to steel output curbs in the country.
Capacity utilisation rates of 163 blast furnaces at mills across the country stood at 62.39% as of Nov.5, data from Mysteel consultancy showed, down from 66.17% the week earlier.
"We expect iron ore prices to find a floor around current levels," ANZ Research wrote in a note. "But, constraints on China's steel output are likely to remain until after the Beijing Winter Olympics, so the upside looks limited in the short term."
The most-traded iron ore futures on the Dalian Commodity Exchange, for January delivery, fell 2.6% to 564 yuan ($88.11) per tonne as of 0330 GMT. The contract was set for a 12% decline this week.
Prices for other raw materials also declined. Dalian coking coal futures faltered 1.2% to 2,380 yuan a tonne and coke prices slipped 2.5% to 3,027 yuan per tonne.
Weekly steel consumption in the world's top metals consumer also dipped, down 2.3% from the previous week, according to Mysteel.
"Intensifying expectation on lower costs and weak demand will further drag steel prices," analysts with Galaxy Futures wrote in a note, adding that futures prices are still lower than spot prices.
Construction rebar on the Shanghai Futures Exchange edged down 0.9% to 4,233 yuan a tonne Hot rolled coils, used in the manufacturing sector, dropped 2.5% to 4,556 yuan per tonne. Shanghai stainless steel futures were down 0.1% to 18,255 yuan a tonne.
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