Benchmark iron ore contract on Dalian Commodity Exchange (DCE) rebounded 3.95 percent on Friday daytime session, after the quote prices from ports dropped for four days in a row. Iron ore supply remains vigorous, as most miners reported higher outputs for the first semester of 2015.
The global four leading iron ore miners cut production costs by 10 US dollars/tonne on average during the past year, and said they would further expand production. During the past week, shipments of Brazilian iron ores totaled 7.039 million tonnes, up 1.21 million tonnes week on week; shipments of Australian ores rose 2.666 million tonnes on week to 15.92 million tonnes. Meanwhile, iron ore demand from China, the world's largest iron ore consumer, is weakening.
China has seen negative growth in both power consumption and generation; the Caixin China Manufacturing PMI hit lowest record since 2009 in August; the shipbuilding industry received 70 percent fewer new orders during the first seven months of this year; also, the investment by real estate developers continued falling. Analysts still expect the iron ore contracts would remain under pressure during next trading week, despite the correction on Friday. (by Zhang Yuenan, zhangyuenan@xinhua.org)
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