BEIJING, April 20 (Reuters) - Dalian and Singapore iron
ore futures contracts slipped further on Thursday due to
lingering pressure from China on irrational price increases,
while growing supply added further downward pressure.
China's state planner said at a regular briefing that it
will closely monitor iron ore market dynamics and take steps to
limit price hikes.
Rio Tinto <RIO.AX, RIO.L>, one of the world's leading iron
ore suppliers, on Thursday reported a better-than-expected 15.4%
jump in first-quarter iron ore shipments from Western Australia,
as it ramped up production at its Gudai-Darri mine.
Brazilian miner Vale SA on Tuesday posted a 5.8%
year-on-year increase in first-quarter iron ore production,
boosted by its key S11D project.
The most-traded September iron ore on the Dalian Commodity
Exchange (DCE) was down 1.66% at 769 yuan a tonne, as
of 0206 GMT, the lowest since April 17, and following 0.96% fall
the previous day.
On the Singapore Exchange, the benchmark May iron ore was down 0.52% at $116.75 a tonne, the lowest since
April 14.
"Australian supply has seen limited impact from cyclone
Ilsa, with Port Hedland re-opened and no year-on-year change on
March volumes," analysts at National Australia Bank said in a
note.
"Indian iron ore exports continued improvement in the first
quarter, adding further downward pressure to iron ore prices,"
they added.
Analysts expect to see less volatility in iron ore prices in
2023, given the more-than-usual government intervention in the
market.
Other steelmaking ingredients including coking coal and coke
fell sharply, pressured by growing supply and subdued demand.
Coking coal tumbled 3.51% to a five month-low to 1,539
yuan a tonne and coke declined 2.94%.
Steel futures also weakened further. Rebar on the Shanghai
Futures Exchange dropped 0.99% to 3,901 yuan a tonne,
hot-rolled coil fell 1.19%, and wire rod eased 0.11%.
Stainless steel edged up 0.23%.
(Reporting by Amy Lv and Dominique Patton in Beijing; Editing
by Sonia Cheema)
