China iron ore futures plunge to over 9-month low on falling steel output

Credit: REUTERS/CHINA STRINGER NETWORK

Iron ore futures in China hit a nine-month low on Wednesday as steel output in the top producer continued to slide, compounding concerns around demand for the raw material.

BEIJING, Sept 15 (Reuters) - Iron ore futures in China hit a nine-month low on Wednesday as steel output in the top producer continued to slide, compounding concerns around demand for the raw material.

China's monthly crude steel production slipped for the third straight month to 83.24 million tonnes in August, data from the National Bureau of Statistics showed, sending average daily output to the lowest since March 2020.

The most-traded iron ore futures on the Dalian Commodity Exchange DCIOcv1, for January delivery, fell as much as 4.3% to 683 yuan ($106.02) per tonne, the lowest since Dec. 9, 2020. The contract was down 1.3% at 705 yuan as of 0330 GMT.

Spot prices of iron ore with 62% iron content for delivery to China fell $2 to $125 a tonne on Tuesday, according to SteelHome consultancy. SH-CCN-IRNOR62

Prices for other steelmaking ingredients, however, gained as supplies remained tight.

Dalian coking coal futures DJMcv1 jumped 1.1% to 2,765 yuan a tonne and coke DCJcv1 inched 0.8% higher to 3,404 yuan per tonne.

China's August coke output stood at 39.67 million tonnes, down 5% from the same month a year earlier.

"Global commodity prices are still at high levels, and there's still uncertainty in future trends despite recent drops," a spokesperson from the statistics bureau said at a briefing on Wednesday.

Construction used steel rebar on the Shanghai Futures Exchange SRBcv1 dipped 0.6% to 5,567 yuan a tonne.

Hot rolled coils SHHCcv1 edged down 0.2% to 5,754 yuan per tonne.

Stainless steel futures SHSScv1 on the bourse rose 3.4% to 19,610 yuan a tonne.

The country's property investment in August rose 0.3% from a year ago, the slowest pace in 18 months, while fixed-asset investment grew 8.9% on an annual basis in the first eight months of the year, according to the statistics bureau.

($1 = 6.4419 Chinese yuan renminbi)

(Reporting by Min Zhang and Shivani Singh; Editing by Devika Syamnath)

((min.zhang@thomsonreuters.com; (8610) 5669-2105;))

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