Declining Iron Ore Prices in China; Cotton Falls on Low Demand
Iron ore prices fell in China, the largest consumer in the world, over the past week on a speculation that a demand will decline as the government plans to cool the property market. The fastest economic expansion in almost three years and fast prices growth caused the Chinese government to cool its real estate market this month. These measures resulted in a drop of domestic prices for iron ore and may be followed by decline of import prices. A demand for iron and steel may fall because such measures can reduce construction. Domestic prices for iron ore dropped yesterday 6.4 percent to 1,310 yuan ($192) per metric ton from a record 1,400 yuan on April 20th in Tangshan, China’s largest spot market for the material.
Cotton futures dropped after the strengthening dollar decreased a demand for some raw materials as an alternative investment. The dollar rose as much as 0.7 percent against a basket of six major currencies. July delivery for cotton fell $0.0074 (0.9 percent) to $0.8446 per pound by 1:27 on ICE Futures U.S. in New York.
If you have any questions and comments on the commodities today, use the form below to reply.
