Iron ore Futures in Singapore Dropped 7.2% to $93.05 a Ton

Iron ore futures in Singapore dropped 7.2% to $93.05 a ton as iron ore futures extended losses below $100 a ton.

The world’s top steelmaker, Singapore, experienced market price instability for the natural mineral with price tumbling for the fifth consecutive day as such, Singapore has begun to intensify production to meet the annual volume cap.

Iron ore inventories in China’s port has doubled, reaching figures last seen in 2019, which shows a sluggish demand. The China Iron & Steel Association has previously said steel output fell in early and mid-October.

According to research from Mysteel consultancy, Daily price of steel in the final lap of October has decreased to its lowest figures since March 2020. Furthermore, Data from the Mysteel consultancy  also showed on Tuesday that iron ore inventories at 45 ports in China jumped to 146.5 million tonnes this week, rising to 4.05 million tonnes from the week earlier.

SteelHome’s data revealed, Spot prices of iron ore with 62% iron content for delivery to China fell $9.5 to $107 per tonne on Monday.

Rebar used for construction in the Shanghai Futures dropped to their trading limit of 8% and was quoted at 4,230 yuan a tonne.

A survey revealed that out of 247 last furnaces and 71 electric arc- furnaces, There were frequent requests from local governments to curb output, while lackluster steel demand and softening prices have dampened mills’ willingness to produce.

All data analyzed indicates that the demand for iron ore is decreasing. The declining  price and low demand may be as a result of China’s moves to clean up its heavy-polluting industrial sector, in which coal-fired steel mills contribute a significant portion of the countries high emission total. Another thesis may be the focus of climate change and net-zero emission strategy implementation  from several countries which has generally lowered global demand.