BEIJING – Dalian and Singapore iron ore futures contracts slipped further on Thursday due to lingering pressure from China on irrational price increases, while growing supply added further downward pressure.
China’s state planner said at a regular briefing that it will closely monitor iron ore market dynamics and take steps to limit price hikes.
Rio Tinto one of the world’s leading iron ore suppliers, on Thursday reported a better-than-expected 15.4 percent jump in first-quarter iron ore shipments from Western Australia, as it ramped up production at its Gudai-Darri mine.
Brazilian miner Vale SA on Tuesday posted a 5.8 percent year-on-year increase in first-quarter iron ore production, boosted by its key S11D project.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) was down 1.66 percent at 769 yuan a ton, the lowest since April 17, and following 0.96 percent fall the previous day.
On the Singapore Exchange, the benchmark May iron ore was down 0.52 percent at $116.75 a ton, the lowest since April 14.
“Australian supply has seen limited impact from cyclone Ilsa, with Port Hedland re-opened and no year-on-year change on March volumes,” analysts at National Australia Bank said in a note.
