Iron ore futures extend losses as Rio Tinto reports rise in quarterly shipments

SINGAPORE: Iron ore futures fell for the fifth straight session on Wednesday as Rio Tinto, the world’s top supplier, reported strong iron ore shipments in its fourth quarter, while concerns over safety inspections weighed on the Chinese market.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.32percent lower at 784 yuan (USD112.58) a metric ton.

The benchmark February iron ore on the Singapore Exchange lost 0.74percent to USD103.2 a ton as of 0708 GMT after touching its lowest since December 17 at USD103 earlier.

Rio Tinto reported a 7percent rise in fourth-quarter iron ore shipments on Wednesday, aided by record quarterly production from Pilbara operations and strong rail and port outload performance. An increase in iron ore shipments from Australia to China would exert downward pressure on Chinese iron ore prices.

Meanwhile, concerns about stricter safety supervisions following an explosion at a steel plate factory in China’s northern region of Inner Mongolia stoked fears over feedstocks demand.