Iron Ore Bludgeoned to Record Low in Asia on China Steel Concern
- Some mills in China may have halted output, Maike's Dang says
- `We still expect prices to weaken further,' ANZ's Hynes says
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Iron ore contracts in Asia slumped to records amid speculation that mills in China are reining in steel production as they battle losses, slumping prices and tighter credit, hurting demand for the raw material that’s mainly shipped from Australia and Brazil.
Futures sank 1.8 percent to 331 yuan ($51.89) a metric ton on the Dalian Commodity Exchange, the lowest close since trading started in October 2013, while the SGX AsiaClear contract in Singapore fell to a fresh low. Losses on markets in Asia can signal declines in the Metal Bulletin Ltd. price for 62 percent content spot ore in Qingdao, which is updated once a day. That was at $46.35 a dry ton on Wednesday from $45.58 a day earlier, a four-month low.