Iron ore prices plunged amid supply growth and expected demand weakness. Much lower prices supported buying activity in the seaborne market.
Australian iron ore fines 62% Fe slumped by $8/t to $111.75/t CFR, posting the largest daily decrease in more than a month, while its futures on the DCE fell by RMB 23.5/t ($3.7/t).
Several bearish factors impacted the raw material on October 28. Firstly, Tangshan city has announced a new round of production cuts starting from 20:00 on October 27, since worsening weather conditions caused heavier air pollution. Steelmakers and independent re-rollers will reduce production based on their emission level and capacities until further notice from authorities comes.
Secondly : The market balance is anticipated to weaken further since port inventories keep growing. Iron ore stockpiles added 2.1 million t this week, reaching 142.3 million t.
