Iron ore declined due to a cautious tone ahead of a major holiday in China that’ll see mainland markets closed for a week from Wednesday.
Futures fell to $103 a ton in Singapore, the lowest since early September, after dropping 2.8% last week. Demand for the steel-making staple may ease during Golden Week break.
Futures fell to $103 a ton in Singapore, the lowest since early September, after dropping 2.8% last week. Demand for the steel-making staple may ease during Golden Week break.
Iron ore prices had been supported over the past month — reaching almost $108 — due to restocking ahead of the holiday, as well as a campaign by authorities in China against what’s seen as excessive industrial competition, including in steel. Still, Bloomberg Intelligence cautioned that those gains were likely to prove vulnerable in the weeks ahead.
“High iron ore prices appear unsustainable.,” BI analyst Michelle Leung said in a research note. “Prices might drop further in October on higher imports,” she said.
Iron ore futures edged down 0.4% to $103.15 a ton at 9:51 a.m. Singapore time. Yuan-priced futures on the Dalian exchange fell 0.8%, while Shanghai steel futures contracts also declined.
