Market Overview: Iron Ore Prices Decline Amid Easing Supply Concerns and Slight Demand Slump

Forex - Iron ore prices fell due to reduced supply concerns and a slight slowdown in demand as steel producers in China took more furnaces offline for maintenance. The May futures contract for iron ore on the Dalian Commodity Exchange (DCE) dropped 1.69% to 786 yuan/ton (107.90 dollars) at 06:10 GMT. The contract hit a low of 783 yuan/ton earlier in the session, the lowest level since November 28. The benchmark January iron ore on the Singapore Exchange fell 0.61% to 103.9 dollars/ton. BHP, one of the world's leading iron ore suppliers, resumed operations at two mines in Western Australia after a pause due to heavy rainfall, alleviating supply concerns. Analysts noted that iron ore prices remain under pressure due to declining steel margins and environmental protection requirements. Coking coal and coke on the DCE declined by 1.36% and 3.24%, respectively. Steel indicators on the Shanghai Futures Exchange weakened, with rebar down 0.89%, hot-rolled coil down 0.52%, wire rod down 0.31%, and stainless steel down 0.39%. Despite reports that Chinese leaders agreed to raise the budget deficit to 4% of GDP next year and maintain an economic growth target around 5%, the iron market generally weakened.