Dalian iron ore sinks to 16-week low on China steel oversupply woes

June 22 (Reuters) - Dalian iron ore futures tumbled on Wednesday to their lowest in 16 weeks, while a sell-off resumed in Singapore, as worries grew about an oversupply of steel in China, the world's biggest producer of the manufacturing and construction material.

Benchmark September iron ore on China's Dalian Commodity Exchange DCIOcv1 ended daytime trade 6% lower at 709.50 yuan ($105.57) a tonne, extending losses to a ninth straight session. It plunged to 698.50 yuan earlier in the day, the lowest since March 1.

The steelmaking ingredient's front-month July contract on the Singapore Exchange SZZFN2 was down 5.6% at $108.45 a tonne, as of 0706 GMT, after a one-day rebound from an eight-session sell-off.

Iron ore has wiped out its 2022 gains in Singapore.

In the spot market, the benchmark 62%-grade material bound for China traded at $117.50 a tonne on Tuesday, based on SteelHome consultancy data SH-CCN-IRNOR62, rebounding from a six-month low of $115.50 a tonne hit the day before.