China iron ore, steel futures dive as mills destocking
China’s iron ore futures plunged as much as 3.1% in early trade on Monday, cooling for a fourth session as demand declined amid a weakening manufacturing sector.
The most-traded iron ore futures on the Dalian Commodity Exchange, for January 2020 delivery, fell 2.1% to 594 yuan ($84.93) a tonne as of 0229 GMT.
China posted its biggest decline in producer prices in more than three years in October, dragged down by cooling demand in the manufacturing sector and a knock from the Sino-U.S. trade friction.
The construction steel rebar on the Shanghai Futures Exchange, dived 1.3% to 3,368 yuan a tonne, the lowest since mid-October.
Hot-rolled coil, used in cars and home appliances, for January delivery, faltered 1.1% to 3,318 yuan.
“The ferrous market is on the weakest front as steel mills are destocking for the end-of-year financial accounting,” said Darren Toh, data scientist with Singapore-based steel and iron data analytics company Tivlon Technologies.
Steel inventories in China stood at 8.9 million tonnes as of Nov.7, the lowest level since Jan.11, according to data compiled by MySteel consultancy.
* Dalian coking coal, for January delivery, edged down 0.4% at 1,230 yuan a tonne.
* Dalian coke slumped 2.1% to 1,714 yuan a tonne.
* Shanghai stainless steel futures plunged 3.0% to 14,405 yuan.
* Benchmark spot 62% iron ore for delivery to China SH-CCN-IRNOR62 fell to $82 a tonne on Friday.
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$1 = 6.9941 Chinese yuan renminbi
Source: Reuters (Reporting by Min Zhang and Shivani Singh; Editing by Shailesh Kuber)