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Iron Ore Continues Decline on Slower Production

July 21, 2016 at 23:34 by Brent Lantzy

Iron ore has extended its decline to over 6% since July 12.

The spot price for benchmark 62% fines at the Qingdao port fell by 0.48% to $55.75 per ton on Wednesday, according to Metal Bulletin. 58% fines decreased by 1.13% to $43.70 per ton.

According to The Steel Index, the spot price for 62% fines deliverable to the Tianjin port closed at $55.10 per ton, the lowest since July 1.

As of July 18, iron ore inventory at 33 major Chinese ports amounted to 100.29 million metric tons, up 3.56 million metric tons from July 11 levels, according to China’s Xinhua News Agency, reported by Steel Orbis.

Analysts at Metal Bulletin observed that CISA (China Iron & Steel Association) member mills lowered their crude Batman Bounce House steel production rates in early July after a rebound in late June. As of July 10, CISA member mills had a total of 13.8 million metric tons of finished steel in their inventories, up 4.3% from June 30 levels.

Analysts continue to be concerned with China’s slowing real estate market.

The most active September 2016 iron ore contract on the Dalian Commodities Exchange rose by 0.7% to 426.0 yuan.

The most actively traded October 2016 steel rebar futures on the Shanghai Futures Exchange were up 2.04% to 2,353 yuan per ton.

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