The benchmark iron ore contract traded on Dalian Commodity Exchange continued to lose 0.23 percent to 437 yuan/tonne by the end of Friday day session.
The Dalian benchmark iron ore contract ended a four-day winning streak on Thursday to end 1.59 percent lower at 431 yuan/tonne. Global leading iron ore giant Vale has reported a loss of 3.118 billion US dollars for the first quarter of this year. The Brazilian giant miner has been stuck in the red for three quarters in a row. Therefore, the company indicated it could cut up to 30 million tonnes from its original production plan for the next two years. Another iron ore giant miner BHP Billiton also implied intention to lower output or slow down the capacity expansion pace.
On Thursday, the China Iron Ore Price Index (CIOPI) declined 0.27 percent to 218.07, according to China Iron and Steel Association (CISA). Specifically, the homegrown iron ore price index rose 0.3 percent to 213.2, while the imported iron ore price index fell 0.42 percent to 219.44. Shadowed by the iron ore contracts, steel contracts saw overall losses on Friday.
The Shanghai benchmark rebar contract went down 0.08 percent to 2,412 yuan/tonne and hot-rolled coil contract slid 0.24 percent to 2,504 yuan/tonne.