Iron-ore sinks toward test of $100 as plenum fails to inspire
Iron-ore dropped to near the $100 a ton threshold as a policy meeting in China failed to deliver major stimulus, while supplies remained robust.
The steelmaking material fell as much as 2.3% to $101.10 in Singapore, with futures on track for a third day of losses. The outcome of the Third Plenum, a twice-a-decade conclave of Communist Party officials last week, underwhelmed investors, with few steps to boost metals demand or fix the property crisis.
On the supply side, data from Brazil — the largest iron ore exporter after Australia — showed daily average shipments reached 1.62-million tons in the first 15 business days of July, a faster pace than in the same month a year ago. Last week, major miners reported record levels of production.
Iron ore has collapsed by more than a quarter this year, and is one of the worst performing major commodities. The material — which dipped briefly below $100 in both March and April — has been dragged lower by signs that the global seaborne market is in surplus, including ballooning stockpiles at ports.
Futures traded 2.1% lower at $101.35 a ton in Singapore at 12:05 p.m. local time. In China, iron-ore contracts in Dalian dropped almost 2%, while steel rebar and hot-rolled coil futures in Shanghai also declined.
The rout has taken a toll on miners’ share prices. In Australia, BHP Group closed on Monday at the lowest level since November 2022, with additional weakness caused by a selloff in copper.
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