Dazman/E+ via Getty Images
Dazman/E+ via Getty Images
Iron ore prices on China's Dalian Commodity Exchange sank to their lowest levels in three weeks after falling for five straight sessions on Thursday, weighed by a pessimistic demand outlook from top steel producer China.
According to Reuters, the most-traded iron ore for September delivery on the Dalian exchange (SCO:COM) ended daytime trading -2.5% at 867.50 yuan/metric ton (~$129), after earlier falling to 861.50 yuan/ton, its weakest since May 26.
On the Singapore Exchange, the front-month July contract fell 0.5% at $128.80/metric ton after retreating to as low as $127.70/ton, the weakest since May 27.
Benchmark 62% iron ore's spot price (TIOC:COM) in China was assessed at a three-week low of $133/metric ton on Wednesday by SteelHome consultancy.
"Steel inventory is rising, and prices are falling," Westpac analysts said, adding that the spot price of rebar fell to the lowest level in 15 months.
The big three global iron ore producers all trade lower: (NYSE:VALE ) -3.3% , (NYSE:BHP ) -2.9% , (NYSE:RIO ) -1.8% .
Investors in Vale "can expect strong shareholder returns this year, thanks to a 20%-plus earnings yield," Jonathan Weber writes in a bullish analysis posted recently on Seeking Alpha.