The main 2309 iron ore futures contract on the Dalian Exchange is now down more than 2 per cent at 707 yuan a tonne in overnight trading. At present, the negative feedback of the industrial chain is still continuing. Last week, the profit rate of 247 sample steel mills has fallen for 5 weeks in a row, and the output of molten iron has been inhibited. The average daily output of molten iron has dropped to 2,404,800 tons, a six-week low.
On the supply side, the total volume of iron ore shipments from Australia and Brazil increased slightly by 365,000 tons to 26.154 million tons last week. Brazil and non-mainstream sectors maintained a stable growth trend. As the off-season of shipments gradually ended, the support from the supply side weakened.
