Iron ore futures slid on Monday as concerns over cyclone-related supply disruptions eased in major supplier Australia following the reopening of local iron ore ports, although upbeat data in top consumer China curbed losses.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) paired some earlier losses to end daytime trade 0.92% lower at 806.5 yuan ($111.26) a metric ton.
The contract touched its lowest level since January 16 at 790 yuan a ton earlier in the session.
The benchmark March iron ore on the Singapore Exchange was down 0.19% at $105.95 a ton by 0710 GMT, after hitting the lowest since February 6 at $104.2.
Western Australia’s Port Hedland, the world’s largest iron ore hub, reopened after Tropical Cyclone Zelia hit the state’s ore-rich Pilbara region, the port’s operator said late on Saturday.
Port of Dampier, which ships iron ore from Rio Tinto, reopened late on Friday.
“Near-term shipments and deliveries will unavoidably be postponed due to the cyclone,” First Futures analysts said in a note.
Analysts forecast a decline in iron ore imports to top consumer China in the first two months of 2025, as weeks of tropical cyclones and adverse weather in Australia disrupted shipments.
A survey from consultancy Mysteel indicated that downstream steel demand had not recovered as expected, putting further pressure on the prices of the steelmaking ingredient.
“The ferrous market will likely be under pressure before solid steel demand shows signs of improvement,” analysts at Jinrui Futures said.
However, new bank loans in China surged more than expected to a record high in January as the central bank moved to shore up a patchy economic recovery, boosting broad sentiment.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.05% and 0.27%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar added 0.67%, hot-rolled coil advanced 0.59% while wire rod shed 0.2% and stainless steel lost 0.15%.
($1 = 7.2487 Chinese yuan)
(By Amy Lv and Lewis Jackson; Editing by Sherry Jacob-Phillips and Janane Venkatraman)
