Stocks of imported iron ore at China’s ports gained by 2.1 million tonnes to 142.3 million tonnes last week on weakening demand, data from SteelHome consultancy showed.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $103.43 a tonne, down 3.7% from Friday’s closing.
Benchmark iron ore futures on the Dalian bourse, for January delivery, ended down 5.7% to 619 yuan ($96.68) per tonne.
Other steelmaking raw materials also declined after the state planner said the coal supply situation had improved significantly.
“Recently, affected by the government’s stringent control of coal prices, costs plunged and sent down steel prices,” analysts with Haitong Futures wrote in a note.
“In the short term, the impact from raw materials could be stronger than fundamentals.”
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