A swing in the price of iron amid anticipation of China's data and new supplies

The price of iron ore fell for the third straight day with the imminent launch of a major new project in Guinea keeping prices under pressure as the market awaited weekly data on steel in China. The price of iron ore, the basic material used in steelmaking, reached about $104 a tonne, about 4% less than the highest level in eight months, recorded earlier in the week. Guinea is preparing for the “Simandou” project. A minister in the Guinean government has said that his West African country will open the railway and port facilities for the large “Simandou” iron ore project on November 11. Traders are also awaiting industrial data from Chinese consultancy Mysteel that reveals the stability of steel demand in Asia’s largest economy. China is the world’s largest consumer of iron ore, while Australia and Brazil are the main sources of supplies. This dynamic is expected to change with the start of production of the “Simando” project. Also Read: Iron price falls from peak as concerns over China’s tariffs ease. Iron supplies are increasing. The Rio Tinto group, which owns a stake in the SimFer areas within the larger project, said earlier this week it expected to start loading the first ship next month. The project is expected to add significant supplies to the market. On the other hand, Bloomberg Investigations reported that Radiant World, a fast-growing company specializing in iron ore trading based in Singapore, is causing concern in the market because of its optimistic views, according to people familiar with the matter. Glencore is a big supporter of Radiant World and has a dedicated team to monitor the risks associated with an investment in it, the people explained. The price of iron ore fell 1% to $104.10 a tonne at 11:52 a.m. in Singapore, and yuan-denominated futures on the Dalian Stock Exchange and steel contracts in Shanghai also fell.