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Iron ore futures slumped more than 3% Monday as China’s weak demand data and slowing steel production dragged trader sentiment lower.
The latest figures from China showed inflation eased to zero in June while factory-gate prices fell further, underlining continued weakness in demand.
The most-traded September iron ore (SCO:COM) on China’s Dalian Commodity Exchange closed daytime trading -3.5% lower at 795.5 yuan/metric ton ($109.94) in the worst showing since October, and benchmark August iron ore on the Singapore Exchange traded -3.1% at $104.3/metric ton.
China’s Tangshan steel hub has ordered steel mills to curb production for July to combat worsening air quality, ANA Research analysts said, adding extreme heat in northern China also may lead to reduced construction activity.
Meanwhile, miner Rio Tinto (NYSE:RIO) highlighted concerns about current conditions on the ground, including in China’s real estate industry, but reaffirmed its positive medium- and long-term outlook.
“It has been bumpy but I think we need to remember that they have, in effect, come out of COVID a year after us,” Rio Tinto (RIO) Chairman Dominic Barton told Bloomberg in an interview.
Other relevant stock tickers include (NYSE:BHP), (OTCQX:FSUMF), (OTCPK:GLCNF), (OTCPK:GLNCY), (OTCQX:AAUKF), (OTCQX:NGLOY)
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Image and article originally from seekingalpha.com. Read the original article here.