Iron ore futures prices declined for the fifth session in a row, driven by increased shipments from Rio Tinto, the world’s largest iron ore supplier, alongside rising concerns over safety measures at Chinese plants, which have cast a shadow over demand expectations.
The most actively traded iron ore contract for May delivery on China’s Dalian Commodity Exchange fell 0.3% to close at 784 yuan ($112.58) per ton.
On the Singapore Exchange, iron ore futures for February delivery dropped 0.7% to trade at $103.25 per ton at 11:01 a.m. Mecca time, after touching an earlier low of $103—the lowest level since December 17.
The decline followed Rio Tinto’s announcement that its shipments rose by 7% in the final quarter of last year, supported by record output from its Pilbara operations in Australia and improved logistics performance, according to Reuters.
Meanwhile, sentiment in the Chinese market was negatively affected after an explosion at a steel plate plant in the Inner Mongolia region, raising concerns about tighter government oversight and safety inspections, which could hinder raw material consumption at major industrial complexes in the north of the country.
