Insight - Iron ore stumbles as rising supply runs into China steel discipline

The main Chinese domestic iron ore benchmark, the Dalian Commodity Exchange contract, dropped around 10% in the week to July 23, the worst weekly performance since February last year. The contract ended the week at 1,126 yuan (US$173.77 or RM734.53) a tonne, and has now slid about 17% from its record high in May.

IRON ore prices have suffered their worst week for nearly 18 months amid signs that the two factors needed for a sustained correction may be coming into play – Chinese steel producer discipline and a recovery in supply of ore.

The main Chinese domestic iron ore benchmark, the Dalian Commodity Exchange contract, dropped around 10% in the week to July 23, the worst weekly performance since February last year.