Iron ore prices dropped in Asia to a record low

Moscow. November 19. Iron ore in Asian trading on Thursday fell to a record low on concerns that steel mills of China will continue cutting production due to losses, reported Bloomberg.

However, in London the prices of many base metals also fell to the lowest marks for several years in connection with the prospects of weakening demand in China.

Quotes contracts for iron ore on the Dalian commodity exchange fell on Thursday by 1.8% to 331 yuan ($51,89) per ton, minimum for all time of existence of these contracts, in October 2013. In addition, the ore is hitting new record low on the stock exchange SGX AsiaClear in Singapore.

According to Metal Bulletin, ore with 62% content of iron delivery to the Chinese port of Qingdao, where the prices are fixed once a day, fell by 2% to 45.44 per ton. This is the lowest level since July 8. Record minimum for this contract was recorded in may 2009 – it was $44,59 per ton.

“For steel producers fell on hard times, some of them have reduced the output by half,” said Maike Futures analyst Dan man. According to Chinese experts, steel production in the country will be reduced in 2016 by 23 million tons – up to 783 million tons.

Copper and zinc on the London metal exchange (LME) has updated the lows since 2009, down by 1.9% and 0.8% respectively. Nickel is close to its lowest point in 12 years.