Singapore iron-ore futures were down 1.2% in May, putting prices on track for the first monthly drop since February. The market is still assessing the impact on steel margins from a rise in coking coal prices after the mine explosion cut off some raw material supply.
At least 82 people were killed and more than 120 injured after an explosion onMay 22 at the Liushenyu coal mine in Shanxi province,
“The surge in coking coal prices following the fatal mining accident in Shanxi late last week is adding pressure to steel mill margins, reinforcing the view that iron-ore prices should remain capped in the $105/t to $110/t range,” said Robert Rennie, head of commodity and carbon research at Westpac Banking Corp.