India’s gold duty cut likely to spark buying spree during festivals
India slashed import duties on gold in July to 6% from 15%, a step aimed at tackling smuggling.
Iron ore crumbled below $100 a ton as a policy meeting in China failed to deliver major stimulus, while supplies stayed strong.
The steelmaking material slid as much as 3.5% to touch $99.85 in Singapore, with futures on track for a third day of losses. The outcome of the Third Plenum, a twice-a-decade conclave of Communist Party officials held last week, underwhelmed investors, with few steps to boost metals demand or fix the property crisis.
On the supply side, data from Brazil — the largest iron ore exporter after Australia — showed daily average shipments reached 1.62 million tons in the first 15 business days of July, a faster pace than in the full month a year ago. Last week, major miners reported record levels of production.
Iron ore has collapsed by more than a quarter this year, and is one of the worst performing major commodities. The material — which dipped briefly below $100 in both March and April — has been dragged lower by signs that the global seaborne market is in surplus, with stockpiles at ports ballooning.
“China’s recent macro policy did not deliver anything beyond what was already expected,” said Han Jing, a senior analyst at SDIC Essence Futures Co., who also cited weak steel-product demand as a driver of lower iron ore prices. “Meanwhile, the global seaborne market is on the side of surplus,” she said.
Futures traded 3.5% lower at $99.90 a ton in Singapore at 3:05 p.m. local time. In China, iron ore contracts in Dalian dropped, along with steel rebar and hot-rolled coil futures in Shanghai.
The rout has taken a toll on miners’ share prices. In Australia, BHP Group Ltd. closed on Monday at the lowest level since November 2022, with additional weakness caused by a selloff in copper.
(By Audrey Wan)
Comments