Iron ore prices tumbled on Monday, weighed by a gloomy demand outlook in China, where many steel mills are nursing losses and cutting production.
Benchmark 62% Fe fines imported into Northern China fell 4.41%, to $109.89 per tonne.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 5.8% lower at 719.50 yuan ($107.49) a tonne, extending losses to a third session and touching its lowest since June 23.
Mining stocks also slid, with Vale down 3.5% from the previous week, Rio Tinto down 3.69%, and Fortescue down 6.16%.
Chinese mills have idled dozens of blast furnaces as stocks piled up after domestic demand weakened, hit by covid-19 restrictions and bad weather.
The rising prospect of a global recession also weighed on sentiment and China’s deliberate move to curb steel output under its decarbonization plan.
“We expect iron ore futures will trade lower this week given these overwhelming price negative factors,” said Atilla Widnell, managing director at Navigate Commodities in Singapore.
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