Iron ore prices extended losses as concerns about China’s steel demand heightened after the world’s biggest iron ore importer reported lower steel output.
Iron ore futures at the Singapore Exchange dropped by 1.83% to $105.4 a tonne on Friday, to around half of its record-price hit in May. Spot iron ore fell 3.38% to $119.96 a tonne on Thursday.
“Declining steel production in China, exacerbated by signs of stress in the property market, is weighing on sentiment,” analysts at ANZ Research wrote in Friday’s note.