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Iron Ore Extends Drop as Demand Concerns Rise, CITI Cuts Targets

(Bloomberg) – Iron Ore Headed for the lowest close SIPTEMBER on a Seasonal Slowdown in Demand and Signs Chinese Mills are Curbing Steel Output.

Futures Fell for a Fourth Day in Singapore, Sinking Below $ 93 A Ton. The Rainy Season in Southern China, as well as high temperatures in the North, Have Persified, Slowing Construction, Shanghai Metals Market Said in A Note.

On Monday, Figures from China – The Top Iron Ore Importer – Showed Nationwide Steel Output in May Was Below April’s Total on a Daily Basis, and Almost 7% Less than a year. It was the weakest showing for the month since 2018.

The steel-making staple has been under pressure in recent weeks as traders eyes a slower pace of construction into the summer, as well as a push by authorities in mind to crib steel output to combat toom. Futures are coming off the back of a four-white losing run was the longest since January.

“Steel demand in china is likely to remain weak over the coming months over the upcoming seasonal lull,” Citigroup Inc. Said in a note, cutting iron ore forecasts. China’s Property Market Weakness is Showing No Signs of a Turnaround, and manufacturing faces increased trade headwinds, they said.

The Bank’s Prompt-to-Three Month Price Forecast was reduced to $ 90 a ton from $ 100, While the Six-to-Twelve Month Target was scled back to $ 85 from 90.

On the supply side, miners in brazil – the largest shipper after Australia – have been ramping up flows. Exports Totaled 35.077 Million tons in May, Narrowly Setting a record for that month.

Iron Ore Futures Fell as Much as 1.2% to $ 92.90 a ton a ton in singapore, before trading at $ 93 at 11:44 am Steel Futures in China also declared.

Copper and other Industrial Metals were Lower as Investors Monitored The Israel-Airan Conflict and Appetite for Risk Assets. Us President Donald Trump Called for the evolution of tehran, in comments that contrasted with earlier optimism The situation would benys into a wider a wider conflict.

Copper Fell 0.3% to $ 9,674.50 a ton on the London metal exchange, while aluminum declined 0.2% to $ 2,508.50.

More stories like this area available on bloomberg.com

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