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China iron ore falls 3rd day on concerns over surplus

service@ironoreteam.comMon Jul 24, 2017 09:06am GMT

China's iron ore futures fell for a third session on Monday amid increasing concern over surplus supply.

"High inventory has been putting pressure on iron ore prices. Unstable steel prices also helped to curb the margins on raw materials," analysts at Orient Futures wrote in a note.

Stockpiles of imported iron ore at Chinese ports SH-TOT-IRONINV rose by 750,000 tonnes over the last week to 140.45 million tonnes, data from SteelHome consultants showed on Monday, just below a peak of 141.5 million tonnes hit last month that is the highest since at least 2004.

The steelmaking raw material is also piling up at mills. Small- to medium-sized mills are on average holding about 26 days of production, up from 25 days, Orient Futures said.

The most-active iron ore futures on the Dalian Commodity Exchange closed 0.9 percent lower at 512 yuan ($75.82) a tonne, dipping as low as 502 yuan during the session.

The most-traded steel rebar contract on the Shanghai Futures Exchange gained 0.29 percent to 3,516 yuan a tonne.

The rise follows a two-day fall of nearly 4 percent at the end of last week as buyer cashed in over concerns about surplus supply.