Iron ore decline deepens

Iron ore prices fell more than 7 percent today to their lowest levels since early 2019 as an unexpected drop in factory activity in China in October cast a gloomy outlook. Iron ore is on track for its worst monthly decline in more than a year after poor factory activity data in China. On the Dalian Commodity Exchange, iron ore for January delivery closed 3.2 percent lower at 612 yuan a ton ($84.27) after falling to 604.50 yuan a ton at the beginning of the session, the lowest since July 22. On the Singapore Exchange, the price fell 7.1 percent today to $75 a ton, the lowest since January 2019. The price later rose to $79.50. In Dalian, iron ore has fallen more than 30 percent from a June peak of 890 yuan a ton, while in Singapore, iron ore has fallen more than 50 percent from an April high of $160 a ton. Analysts said prices could rise if marginally higher-cost iron ore suppliers respond quickly to lower prices and reduce shipments. China’s housing crisis and the negative impact of its zero-Covid policy on the construction sector are weighing on prices. Prices have been falling since China’s Communist Party Congress last week. Rebar on the Shanghai Futures Exchange fell 2.3 percent, hot-rolled coil fell 1.8 percent, wire rod fell 1.5 percent and stainless steel fell 2 percent.