Iron ore stabilises on slower-than-expected China demand fall

Iron ore futures steadied on Monday as the latest decline in Chinese steelmaking demand proved modest, Business Recorder reported. Singapore’s December contract gained 0.31% to $91.05 a metric ton at 0840 GMT, after losses of 6.1% in September and 2.6% in October. On Dalian, the most-active contract finished daytime trading 0.07% lower at 674.5 yuan ($101.46) a ton, extending monthly falls of 3.4% and 4.3%, respectively.

Chinese mills have started maintenance and some northern producers have reduced output, but average daily hot metal production among surveyed steelmakers was down only 0.2% week on week, at around 2.32 million tons on October 29, Mysteel data showed. Analysts at Guoxin Futures said weak fundamentals still pose a risk, while prices found some support after approaching a technical level. Coking coal and coke fell 2.82% and 3.01%, while Shanghai steel contracts were mostly lower, including a 1.05% drop in rebar.