Iron ore sank below $100 a ton, hitting the lowest level in more than two weeks, as China’s efforts to support growth underwhelmed investors, and miners continued to ramp up operations.
Futures fell as much as 0.9% in Singapore, declining for a third day. China’s latest measures to kick-start its economy — a debt-swap plan — stopped short of direct stimulus, and inflation remains weak in the top iron ore user.
Iron ore’s slide on Tuesday came amid a broad retreat in commodities, with a gauge of the US dollar holding close to its highest level in a year. That makes raw materials priced in the currency more expensive for most buyers.
The steel-making ingredient is one of the year’s worst performing major commodities, losing more than a quarter of its value, as China’s economy slows despite government efforts to arrest the slide and fix a drawn-out property-sector crisis. Top miners, meanwhile, have been boosting flows, and Chinese port inventories are at their highest ever for this time of year.
Shanghai Metals Market repeats witness on aluminium and alumina prices going opposite directions
Aluminium prices rise across the board on SMM, defying previous week’s declining trend
