China iron ore price drops to 7-month low
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China’s hard commodities were on the downswing on Thursday, led lower by another tumble in the price of iron ore.
Iron ore futures contracts on the Dalian Commodity Exchange fell as much as 5.5 per cent to Rmb445 ($64.44) a tonne on Thursday, their lowest level since November 8.
Dalian-listed coking coal futures dropped below the Rmb1,000-per-tonne mark for the first time since October 10, falling as much as 6.9 per cent to Rmb993.
Thermal coal contracts on the Zhengzhou Commodity Exchange were down as much as 2.3 per cent at Rmb203, bringing them down 15.6 per cent lower from an April 5 peak.
Copper was faring better, with contracts on the Shanghai Futures Exchange down just 0.2 per cent at 249.95 a tonne for a year-to-date drop of just 0.7 per cent.
Hard commodities have been under pressure since late March as regulatory tightening has led to a shortage of liquidity. On Thursday the cost of short-term lending remained close to a recent two-year high as the Shanghai interbank overnight rate edged lower to 2.813 per cent.
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