BEIJING (Reuters) – China’s iron ore prices fell for a fourth day on Friday amid expectations that the oncoming winter season will see reduced demand for the steelmaking raw material and as Sino-U.S. trade tensions eased.
The most traded iron ore contract on the Dalian Commodity Exchange, for January delivery, tumbled as much as 4.8 percent to a three-week low of 501.50 yuan ($72.76) a tonne in its biggest intra-day dip since June 19.
The contract closed down 3.5 percent at 508.50 yuan, notching a 4 percent loss for the week, its biggest weekly drop since the week ended May 25.
When China imposed import tariffs on $60 billion worth of U.S. goods, including iron ore, in August, the contract spiked by around 5 percent, even though U.S. ore accounts for relatively little of China’s imports.
The presidents of the United States and China both expressed optimism over resolving their trade dispute after a phone call on Thursday.
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