Weak Chinese steel still weighing on iron ore

摘要

Iron ore trade was quieted by public holidays in China Monday, though weak steel fundamentals continued to weigh heavily. Platts assessed the 62% Fe IODEX at $60/dry mt CFR North China, down $1/mt on day. Sources saw negative steel margins and the weak downstream market as the primary bearish factors for iron ore. Hot weather was curtailing construction activity and steel demand in China — consequently mills were struggling to move tons and buying less iron ore, and some were seemingly mulling production cuts, which would further depress raw materials demand.