Iron ore price at 4-month low on subdued demand, rising inventories

Iron ore prices fell sharply on Friday as subdued buying interest from steel mills and a pick-up in port inventories undermined investor sentiment.

Benchmark 62% Fe fines imported into Northern China fell 5.73%, to $110.41 per tonne, the lowest since December 2022.

The most-traded September iron ore contract on the Dalian Commodity Exchange ended daytime trading 4.82% lower at a near four-month low of 730.5 yuan ($105.96) a tonne.

The benchmark May iron ore price was 5.82% lower at $108.65 a tonne on the Singapore Exchange, as of 0708 GMT, the lowest since December 28, 2022.

“Mills’ buying interest (in spot iron ore cargoes) ahead of the upcoming (May 1-3) holiday is weaker than expected, weighing on spot prices and sending pressure to futures markets as well,” said Yu Chen, a Shanghai-based analyst at consultancy Mysteel.