Warnings of lower prices from Australian authorities and expectations of softer seasonal demand added to the bearish outlook. The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.32% lower at 708.5 yuan ($98.92) a metric ton.
The benchmark August iron ore on the Singapore Exchange lost 0.9% to $93.45 a ton as of 0349 GMT. China’s manufacturing activity shrank for the third straight month in June, though at a slower pace. However, business sentiment remains subdued.
Additionally, continued weakness in China’s property sector and an Australian government report warning of lower prices due to weak outlook further weighed on sentiment, ANZ said.
Moreover, investor sentiment was further tempered after Jiang Wei, secretary general of China Iron and Steel Association, was quoted by China Metallurgical News last week as advising authorities to curb exports of billet.