Iron ore futures extend losses

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.74% lower at 803.5 yuan ($111.65) a metric ton, set for a weekly drop of 8.5%.

The benchmark April iron ore on the Singapore Exchange was 1.43% lower at $101.75 a ton, as of 0351 GMT, and down 12% for this week. “Weaker demand prospects are increasing possibilities of steel production cuts... less steel production means lower demand for iron ore,” analysts at ANZ bank said in a note.

Risks of faltering ore demand loomed after a few provincial steel associations issued statements to either call for a steel output cut or only vaguely propose local market players to jointly promote the healthy development of the steel industry, according to consultancies Mysteel and Lange Steel.