Iron ore sank below $100 a ton, hitting the lowest level in more than two weeks, as China’s efforts to support growth underwhelmed investors, and miners continued to ramp up operations.
Futures fell as much as 0.9% in Singapore, declining for a third day. China’s latest measures to kick-start its economy — a debt-swap plan — stopped short of direct stimulus, and inflation remains weak in the top iron ore user.
Iron ore’s slide on Tuesday came amid a broad retreat in commodities, with a gauge of the US dollar holding close to its highest level in a year. That makes raw materials priced in the currency more expensive for most buyers.
The steel-making ingredient is one of the year’s worst performing major commodities, losing more than a quarter of its value, as China’s economy slows despite government efforts to arrest the slide and fix a drawn-out property-sector crisis. Top miners, meanwhile, have been boosting flows, and Chinese port inventories are at their highest ever for this time of year.
