China’s iron ore futures were on course for their biggest weekly drop since March 2018 on Friday, slumping for the seventh straight day amid stabilising supply from major miners.
The most-traded iron ore contract on the Dalian Commodity Exchange, for January 2020 delivery, fell 3.0 per cent to 644 yuan ($US91.36) per tonne on Friday afternoon and was in line for a weekly loss of 12.4 per cent, the most since the week ended March 23, 2018.
It had closed down 2.7 per cent on Thursday.
“Iron ore prices are actually stabilising after the big drop on Wednesday,” said Zhuo Guiqiu, analyst from Jinrui Futures, adding that the estimated average cost of production for domestic mines was at around 580-600 yuan per tonne, meaning “there’s not much space for another big decline”.
China’s iron ore imports surged 21 per cent to 91.02 million tonnes in July from the previous month, the highest level since January, boosted by growing shipments from Australia and Brazil.
Meanwhile, the most-active October construction steel rebar on the Shanghai Futures Exchange fell 2.7 per cent in morning trade to 3,613 yuan per tonne.