Iron ore continued its decline, closing at a seven-month low and approaching $100 per ton, a level that is halting some high-cost production.
The raw material for steelmaking fell from more than $140 per ton early this year to less than $106 due to concerns about the outlook for demand in China. Steel consumption did not rise as some investors expected in March.
In the absence of major new stimulus measures from Beijing, the main focus for iron ore is cost support. Since major global mining companies such as BHP or Rio Tinto have very low costs and high profit margins, some places of marginal production – for example, in China or India – will suffer if prices fall further. .
Iron ore fell by 3.1% to reach $105.85 per ton by 10:22 am on the Singapore Stock Exchange. Futures on the Dalian Commodity Exchange fell 1.5%, while steel futures in Shanghai were mixed.
