Business Recorder
BEIJING: Iron ore prices slid on Thursday to their lowest in more than a month, weighed down by rising supply and doubts about demand prospects in top consumer China amid shrinking steel margins. The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) lost 2.14% to 753 yuan a metric ton, its lowest since March 5. The September contract is now the most-traded, instead of May. The benchmark May iron ore on the Singapore Exchange fell 2.1% to $103.55 a ton by 0333 GMT, after touching its lowest since March 10 at $103 earlier in the session. Higher shipments put iron ore prices under pressure, analysts at broker Jinyuan Futures said in a note. Low profitability among steelmakers would disincentivise mills from ramping up production, suggesting a limited upside for demand, they said. Moreover, speculation that China’s state iron ore buyer and global miner BHP would potentially reach an agreement on 2026 term contract also weighed on prices, said analysts and traders on condition of anonymity given the sensitivity of the matter. That’s because a solution to the months-long dispute will increase spot cargo availability at ports. China Mineral Resources Group, set up in 2022 to centralise iron ore procurement and win better terms from miners, has been locked in a supply contract negotiation with BHP, banning domestic steel mills and traders from buying some of its iron ore brands. BHP’s incoming CEO, Brandon Craig, met with the chairman of Chinese aluminium giant Chinalco on Wednesday after Craig said last month that he would focus on strengthening the company’s relationships in China. Other steelmaking ingredients were mixed, with coking coal down 1.53% and coke up 0.09%. Steel benchmarks on the Shanghai Futures Exchange moved sideways. Rebar eased 0.19%, hot-rolled coil edged down 0.06%, wire rod added 0.49% and stainless steel advanced 0.6%.
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