Iron-ore at three-week low as shrinking steel margins, slow demand weigh
Iron-ore futures prices slid to their lowest in nearly three weeks on Thursday, pressured by shrinking steel margins and faltering demand following the completion of pre-holiday restocking in top consumer China.
The most-traded iron-ore contract on China's Dalian Commodity Exchange (DCE) slipped 1.29% to 805 yuan ($116.88) a metric ton, after touching its lowest since March 12 at 793.5 yuan earlier in the session.
The benchmark May iron-ore on the Singapore Exchange was 0.71% lower at $105.55 a ton as of 0703. It hit its lowest since March 16 at $104.50 earlier.
Sentiment in global metal markets soured after US President Donald Trump failed to provide clarity on when the Middle East conflict might end. Oil prices surged back above $100, rekindling fears of inflation, interest rate hikes and the potential for a recession.
In China, some domestic steelmakers have completed feedstock restocking for the Qingming festival over April 4 to 6, with the resultant drawdown in spot liquidity pressuring prices, said Xinli Chu, an analyst with broker China Futures.
Additionally, the need for capital rebalancing at the start of the month might spur some selloff on the-ore side, said a Singapore-based trader on condition of anonymity as he is not authorised to speak to media.
Coking coal and coke, other steelmaking ingredients, declined 0.4% and 0.35%, respectively.
Steel benchmarks on the Shanghai Futures Exchange mostly extended losses. Rebar dropped 0.67%, hot-rolled coil dipped 0.55%, and stainless steel shed 0.81%. Meanwhile, wire rod rose 1.9%.
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