Iron ore prices fell for the fifth consecutive day, continuing their downward trend amid a weak Chinese steel market. Futures contracts for the steelmaking material fell to their lowest levels since April, reaching $92 per ton this week.
The price continues to decline as traders assess market fundamentals and lower Chinese demand for rebar.
Iron ore prices are down more than 13% compared to last year as China's property market continues to stagnate with no signs of recovery. This decline is part of a longer-term downward trend, which Citigroup expects will push prices to $85 per ton within six to 12 months.
Yongan Futures analysts wrote in a research note on Wednesday that demand for steel used in construction still has room to fall. Despite the seasonal slowdown in iron ore demand, low inventories are a buffer against further price declines.
Singapore iron ore futures fell 0.4% to $92.45 per ton at 11:57 a.m. local time. Yuan-denominated futures in Dalian declined, and Shanghai steel futures were mixed.
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