Iron price is under pressure with the support level at $100 being shaken

Iron ore prices fell as Chinese steel mills’ profits came under pressure amid uncertainty over demand. Futures for the key steelmaking material fell 1.4% to $103.20 in Singapore trading. Prices are headed for their second weekly drop, with traders assessing conditions in the world’s biggest steel market. Bloomberg Intelligence wrote in a research note that the $100 per tonne iron ore support level came under increasing pressure in the fourth quarter, with weak Chinese investment in fixed assets and falling profitability of steel mills, highlighting the fragility of market fundamentals. She pointed out that the correction in Chinese steel prices has again pushed factories to record losses. Iron ore stocks are piling up. Data released by Chinese consultancy Mysteel showed an increase in iron ore stockpiles at factories and ports. This accumulation comes after China’s imports rose to a record level last month, and production of the first shipment of crude oil from the giant “Simandou” project in Guinea is expected to start soon. Also read: A move in the price of iron amid anticipation of China’s data and new supplies. BMI, a subsidiary of Fitch Group, wrote in a research note: “High inventories prompted mainland Chinese steel mills to reduce their purchases.” Singapore iron ore futures closed at 12:31 p.m. local time down 0.9% to $103.75 a tonne. Yuan-denominated futures on the Dalian Stock Exchange and steel contracts in Shanghai also fell. Base metals fall At the same time, base metals trimmed their gains made this week on the London Metal Exchange as the price of aluminum fell 0.2% after closing at its highest level in more than three years on Thursday. The price of copper also fell by 0.2%.