The price of iron ore has dropped from its highest level since February, after the Grand Mining Company, Vale SA, reported its high semester production, while investors make the prospects for demand in China, the largest importer. Future contracts dropped in Singapore near $ 104 per tonne, after rising more than 4% in two days, supported by a large dam project in Tibet, which strengthened demand expectations. Traders also evaluate Beijing’s efforts to combat competition between steel manufacturers, which can support the factory’s profit margins and improve raw material prices. The Brazilian company “Valley” said it produced 83.6 million tonnes during the three months ending in June, which is the highest production in the second quarter since 2021. However, the company explained that sales left production, and provided a broader group of crude oil to meet the demand in light of the pressure facing steel companies. The Australian company “Fortescue” announces the offer data on Thursday. Chinese restrictions on iron supply The prices of iron ore are still higher during July compared to a series of monthly declines that lasted five consecutive months. The latest profits came after the China authorities showed a greater seriousness by moving forward with the reforms of the show, a step that could improve the financial situation of factories. However, the step can reduce steel production, which can weaken the demand for iron ore. As for the steel industry, analysts of “Bloomberg Intelligence”, including Michel Lyong, wrote in a note that “the signals from the current policy indicate the renewal of supplies on supplies”, referring to Beijing’s focus on excessive competition. They added that the average daily production of raw steel could “continue to decline” after it decreased in early July. Iron ore fell 1.6% to 103.70 dollars per ton, which is circulated at $ 104.25 at about 02:01 Singapore. In Shanghai, arming contracts and wrapped fools have on the hot case. Metal Coal – which is another important element for steel manufacturers – was the attention of the market, as future contracts jumped in Dalian after the organizers promised to confront the excessive production.
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