The price of iron ore fell by about 5%, heading to $110 per ton, as disappointing demand from China left the market with a glut of inventory.
The price of crude oil used to make steel fell by nearly a quarter in early January from its highest levels, amid continuing pressure on real estate and the manufacturing sector in China. The Chinese People’s Party Congress, which concluded on Monday, offered few proposals to boost demand, and the volume of iron ore stocks in ports rose to its highest levels in a year.
Iron ore futures prices fell 4.6% to $110.55 per ton in Singapore at 11:35 am local time, heading for the lowest closing price since August. Futures prices in Dalian fell by 3.7%, and steel futures in Shanghai also fell.
