Latest News
-
Uncertainty Surrounds Guyana Gas Development
Doubts are growing over Guyana's pick of a little-known U.S. startup to craft and develop projects to monetize its vast untapped natural gas resources that could cost up to $30 billion. Year-old Fulcrum LNG faces financing hurdles that could derail its selection. Ultimately, the South American nation may end up relying on a consortium led by Exxon Mobil, which controls all the production in the new energy hotspot. So far the top U.S. oil producerhas focused on oil.Guyana has been pressing Exxon to come up with a plan to convert its about 16 trillion cubic feet of gas reserves into valuable exports such as liquefied natural gas (LNG), or relinquish areas where gas has been discovered so they can be developed by others.When Fulcrum was chosen in June, its founder and former Exxon executive Jesus Bronchalo said on LinkedIn he was "delighted and honored" to be selected "to design, finance, construct and operate the required gas infrastructure."Since then, Fulcrum has not identified any financial backers, casting doubt over its ability to pull off the work, and leading government officials to now describe its selection as tentative. "No project has been awarded to anyone. We're in an exploratory phase," Guyana's Vice President Bharrat Jagdeo told Reuters last month. That is a change from the ministry of finance's description of the awarding of the contract as among its economic achievements this year. Guyana's president, who announced the award, said an agreement, that may or may not include Exxon, was expected next year.Meanwhile, the opposition People's National Congress party is skeptical about the award. Fulcrum LNG "lacks requisite experience and a demonstrated ability to raise the type of multi-billion dollar finances required," said Elson Low, an economist and advisor to the PNC.FULCRUM'S LEVERAGEGuyana picked Nevada-registered Fulcrum LNG, which it said offered "the most comprehensive and technically sound proposal," among the 17 bidders, including China's third-largest oil firm CNOOC, U.S. gas pipeline giant Energy Transfer, and the No. 4 U.S. LNG exporter Venture Global LNG.Ira Joseph, an LNG market expert and senior researcher at Columbia University's Center on Global Energy Policy, said it would be "very difficult" for a startup to raise the financing for a multi-billion-dollar infrastructure project. "Why isn't Exxon building the LNG plant itself? It is very hard to raise that kind of money to make a project work, (Guyana) would have to bring in one of the big players like TotalEnergies or Shell," Joseph said. Besides pairing with U.S. oil service Baker Hughes and construction contractor McDermott , Fulcrum's proposal would include financing from the U.S. Export-Import Bank and the participation of private equity firms and an environmental partner, the government said.The U.S. Export-Import Bank and McDermott did not reply to requests for comment, and Baker Hughes referred questions to Fulcrum. Bronchalo, who is Fulcrum's CEO, secretary, treasurer, director and president, and the only other person associated with the company, the technical director, did not respond to requests for information.Exxon's consortium with Hess and CNOOC has discovered more than 11 billion barrels of oil off Guyana's Caribbean coast since 2015, and produced 500 million barrels of crude from its Stabroek block since 2019, turning the tiny country overnight into a significant global oil producer. So far, Exxon's only planned use for the gas is a small gas-to-power project.The project to develop gas independently was conceived as a way for Guyana to create a new revenue stream apart from the oil, which is entirely exported. Gas would develop the country’s manufacturing and food sectors and help make it a regional energy powerhouse.Last year, the country's take from royalties and fees was $1.6 billion, compared with $6.33 billion in profit that went to the consortium. Exxon's Guyana country manager Alistair Routledge told Reuters the company would make a decision on tapping newer discoveries containing mostly gas by mid-2025. Fulcrum "may have better data and more knowledge than the government to push Exxon in that direction," said Guyana's vice president. Jagdeo said Guyana wants Fulcrum to work with Exxon, but would push forward with or without it. If, however, Exxon does not act on the discoveries or auction the acreage to others willing to develop the gas, Guyana could claw back some offshore land, he said.(Reuters)
-
Base metals mostly fall on firm dollar, Trump's tariffs plan
Costs of base metals were mostly down on Tuesday, weighed by a more powerful dollar and U.S. Presidentelect Donald Trump's pledge to levy more tariffs on Chinese products. Three-month copper on the London Metal Exchange (LME). fell 0.5% to $9,000 per metric heap by 0216 GMT, while. the most-traded January copper agreement on the Shanghai Futures. Exchange (SHFE) alleviated 0.2% to 73,810 yuan ($ 10,174.66). a lot. On Monday, Trump promised an extra 10% tariff on goods. from China and a 25% tariff on all products from Mexico and. Canada from his first day in workplace. China accounts for around half of the world's metals. consumption and makes most of the world's items. Trump's proposed tariffs will likely harm financial growth. and interfere with trade circulations, which might eventually moisten metals. consumption. The tariffs prepare likewise pressed the dollar higher versus major. currencies, making greenback-priced metals more pricey to. holders of other currencies. However, supporting copper cost is China's peak demand. season in November and December, evidenced by falling SHFE. stocks and enhancing imports premium. Yangshan copper premium rose to a one-week. high of $53 a ton. The LME money copper contract was trading at a discount of. $ 113 a lot to the three-month agreement , the smallest. discount rate since Aug. 19, suggesting tightening up near-term. supplies. LME aluminium fell 0.8% to $2,630.50 a lot, nickel. decreased 0.5% to $16,125, zinc decreased 0.2% to. $ 3,014.50, lead was down 0.7% at $2,014.50 and tin. shed 0.5% to $28,840. SHFE aluminium increased 0.1% to 20,550 yuan a ton,. nickel climbed 0.8% to 128,140 yuan, zinc. climbed 1.2% to 25,100 yuan, lead was nearly flat at. 17,160 yuan and tin fell 0.1% to 242,430 yuan. For the leading stories in metals and other news, click. or
-
Gold costs hold consistent after Trump's tariff pledge
Gold prices held steady on Tuesday after a 3% drop in the previous session, supported by increased safehaven demand following Presidentelect Donald Trump's. pledge to impose tariffs on all imports from Canada, Mexico and. China. Area gold was steady at $2,625.48 per ounce, since. 0259 GMT, after hitting its lowest considering that Nov. 18 earlier in the. session. U.S. gold futures edged 0.3% higher to $2,625.80. Despite the extended sell-off yesterday, gold is holding up. reasonably well, which recommends some safe-haven need, stated. said Matt Simpson, senior analyst at City Index, adding we. could see more turbulence ahead, particularly with Trump back in. focus. Trump pledged substantial tariffs on Canada, Mexico, and China--. running the risk of trade wars. Gold is typically thought about a safe-haven investment. during durations of financial and geopolitical unpredictability,. consisting of trade wars and other disputes. On The Other Hand, Federal Reserve Bank of Minneapolis President. Neel Kashkari, generally on the hawkish end of the U.S. main. bank's policy spectrum, stated he is open to cutting rates again. next month. According to the CME Group's FedWatch Tool, markets. currently estimate a 55.9% chance of a 25-basis-point U.S. Federal Reserve rate cut in December. Traders will keep a close eye on U.S. consumer self-confidence. information and the minutes from the Fed's November conference later. today, along with the first modification of GDP and core PCE figures. are set to be released later this week. I expect gold to sell a narrow variety in the short-term,. with a slight upward drift, Simpson included. On the geopolitical front, U.S. President Joe Biden and. French President Emmanuel Macron are set to announce a ceasefire. in Lebanon between Hezbollah and Israel, according to four. senior Lebanese sources. Spot silver was flat at $30.29 per ounce, platinum. shed 0.2% to $937.05 and palladium was up 0.3% at. $ 975.65.
-
Iron ore edges higher on firmer steel output, but Trump tariff pledge weighs on market
Iron ore futures ticked up on Tuesday for a 2nd straight session, buoyed by stronger international steel production, although U.S. Presidentelect Donald Trump's pledge to implement brand-new tariffs when he takes workplace minimal gains. The most-traded January iron ore contract on China's Dalian Product Exchange (DCE) traded 0.77% higher at 786.5 yuan ($ 108.41) a metric ton, as of 0240 GMT. The benchmark December iron ore on the Singapore Exchange was 0.19% higher at $102.8 a load. The World Steel Association revised its production information upwards on Monday to show global crude steel output in October increased 1% from a year previously, compared with a 0.4% gain reported last Friday. In China, the world's top producer and customer of the metal, unrefined steel production climbed up 2.9% last month, newest information revealed. On the other hand, Trump promised an additional 10% tariff on all Chinese products until Beijing stops the circulation of illegal drugs into the United States. China, the world's second-largest economy, is now in a much more vulnerable position given the country's prolonged residential or commercial property recession, financial obligation threats and weak domestic demand. Neither the United States nor China would win a trade war sparked by Trump's tariffs, the Chinese Embassy in Washington stated on Monday. Iron ore markets stay extremely focused on upcoming Chinese conferences, including the Politburo meeting scheduled for early December and the Central Economic Work Conference arranged for mid-December, Westpac analysts stated in a note. China still deals with really extreme structural headwinds to development, however at the very least, financial and financial policy settings are now more clearly injecting significant support, Westpac said in a separate note. Other steelmaking ingredients on the DCE were blended, with coking coal down 0.7% and coke up 0.44%. The majority of steel criteria on the Shanghai Futures Exchange edged higher. Rebar acquired about 0.4%, hot-rolled coil rose practically 0.3%, wire rod reinforced about 1.2%, while stainless steel lost nearly 0.7%.
-
Dollar jumps, stocks retreat after Trump vows tariffs
The dollar rallied dramatically on Tuesday after U.S. Presidentelect Donald Trump pledged tariffs on all imports from Canada and Mexico, and extra tariffs on China. Stocks declined, giving back some of the robust gains of the previous session, when they were buoyed by the nomination of fund manager Scott Bessent as Treasury Secretary, considered by investors as a voice for Wall Street in Washington. Bessent's visit had likewise caused a sharp fall in U.S. yields as investors scooped up Treasury bonds, sending out the dollar moving in the previous session. It's almost as if Trump wants to advise markets who is in control, after nominating Scott Bessent as Treasury Sec - a man markets anticipated to cool Trump's potency, stated Matt Simpson, senior market analyst at City Index. With the Canadian dollar increasing versus the Mexican peso, markets are presuming this will hit Mexico the hardest. The dollar jumped 1.6% to 20.6000 Mexican pesos as of 0213 GMT on Tuesday, and climbed 1% to C$ 1.4132. It reinforced 0.2% to 7.2628 yuan in offshore trading , after earlier reaching the highest given that late July at 7.2730 yuan. Australia's risk-sensitive dollar - which also tends to show the outlook for top trading partner China - slumped 0.5% to $0.6474, after earlier dipping to $0.64335 for the first time given that Aug. 5. It was just last month that Trump said that 'one of the most beautiful word in the dictionary is tariff', so there actually must not have actually been a surprise in Trump's objective, just in the timing of the remarks, stated Sean Callow, a senior FX expert at ITC Markets. The fall in trade-sensitive currencies makes sense, and should continue near term. Japan's Nikkei dropped 1.2%, giving back the majority of Monday's gains, as financiers pondered the risks of tariffs on the country's lots of heavyweight exports, especially car manufacturers. Toyota moved 2% and Nissan toppled 4%. Australia's stock criteria reduced 0.46%, a day after increasing to a record high. Taiwan's share index lost 0.8%. However, Hong Kong's Hang Seng added 0.6%, and mainland blue chips increased 0.2%, reversing earlier declines. Trump stated that on his very first day in office he would impose a. 25% tariff on all products from Mexico and Canada, and an. additional 10% tariff on items from China, mentioning issues over. unlawful immigration and the trade of illicit drugs. Trump has previously vowed to end China's. most-favored-nation trading status and slap tariffs on Chinese. imports in excess of 60%. It's certainly a shock to the marketplace and weighing on. Chinese assets, especially the export sectors, stated Gary Ng,. senior economist at Natixis. However compared to what he troubled Canada and Mexico,. the magnitude (of the Chinese tariff) is not that huge, so. investors might still wish to see what are the follow ups and. when/if the 60% promised will actually come through. U.S. S&P 500 futures pointed 0.1% lower following a. 0.3% gain in the cash index overnight. Pan-European STOXX 50 futures dropped 1%. The euro slipped 0.4% to $1.0459. Sterling. lost 0.34% to $1.2527. At the same time, the dollar edged down 0.1% to 154.04. yen, after at first reinforcing following Trump's. tariff remarks. The dollar-yen set tends to track long-lasting U.S. Treasury yields, which ticked up about 2 basis. indicate 4.2809% in Tokyo, but following a 15 basis-point slide. on Monday. Gold succumbed to the dollar's strength, dipping to a. one-week low of $2,604.99. Bitcoin increased 1% to $94,610, finding its feet. following a pullback from recently's record high at $99,830. The token has actually taken advantage of speculation of a much easier regulatory. environment for cryptocurrencies under Trump. Oil rates extended decreases from the previous session as. investors analyzed a prospective ceasefire in between Israel and. Hezbollah. Brent crude futures fell 0.38% to $72.73 a. barrel, while U.S. West Texas Intermediate unrefined futures. were at $68.62 a barrel, down 0.46%. Both criteria settled. down $2 per barrel on Monday.
-
British Organization - Nov 26
The following are the leading stories on the business pages of British newspapers. Reuters has not confirmed these stories and does not attest their accuracy. The Times - Britain's financial regulator has actually fined Barclays 40 million pounds ($ 50.10 million) for its failure to reveal payments made to Qatari entities in 2008, after the count on Monday said it had actually dropped its appeal over the case. - UK-based Vertical Aerospace and Mudrick Capital have actually signed a non-binding term sheet under which the financier will transform half of its impressive convertible debt to equity and extend the payment date on the remainder to December 2028. The Guardian - Gambling establishments and bookies in Great Britain will be forced to pay a 100 million pound-a-year levy to money research study, education and treatment of gambling harms, under government plans to be announced as soon as this week. - The UK federal government has guaranteed to do all it can to assist James Scott Rhys Anderson, a previous British soldier fighting for Ukraine who has actually been taken detainee by the Russian army. The Telegraph - Gail's, the upmarket bakeshop chain embroiled in a. gentrification row, has appointed advisers to start a 500. million pound sale procedure. - HSBC's chief sustainability officer, Celine. Herweijer, has actually stepped down weeks after a management reshuffle. eliminated her role from the lender's executive committee. Sky News - British financing minister Rachel Reeves on Monday said she. would never have to repeat the tax hikes of her first budget, an. effort to assure companies that were caught off-guard by a. 25 billion-pound tax rise. The Independent - Britain's federal government said on Tuesday it plans to increase. access to psychological health support and to reform job centres as. part of its push to get more individuals back into the workforce.
-
What Trump 2.0 could indicate for trade, migrants, climate change and electric automobiles
Donald Trump's second presidential term might have big implications for U.S. trade policy, climate change, the war in Ukraine, electrical automobiles, Americans' taxes and prohibited immigration. Trump on Monday vowed to enforce tariffs on the United States' leading 3 trading partners including a 25% tariff on all products from Mexico and Canada and an extra 10% tariff on goods from China. While a few of his campaign propositions would require congressional approval, here is a summary of the policies he has said he will pursue when he takes office on Jan. 20: MORE TARIFFS In his very first significant tariff pledge given that the election, Trump vowed an extra 10% tariff on Chinese items, and said he would provide executive orders on his first day in workplace to charge Mexico and Canada a 25% tariff on all imports from the two U.S. next-door neighbors. Critics state tariffs could cause greater prices for American consumers and international economic instability. New tariffs would appear to violate the regards to the U.S.-Mexico-Canada Agreement on trade, which Trump signed into law throughout his first term in workplace and took effect in 2020. He has likewise stated he needs to have the authority to set greater tariffs on countries that have actually put tariffs on U.S. imports. He has threatened to impose a 200% tariff on some imported cars and trucks, saying he is identified in specific to keep cars and trucks from Mexico from entering the country. However he has actually also recommended that allies such as the European Union could see higher responsibilities on their goods. Trump has targeted China in particular. He proposes phasing out Chinese imports of products such as electronic devices, steel and pharmaceuticals over four years. He seeks to forbid Chinese companies from owning U.S. real estate and facilities in the energy and tech sectors. Trump has stated tariff is his preferred word and views them as income generators that would help fill government coffers. MASS DEPORTATIONS Trump has actually pledged to reinstate his first-term policies targeting prohibited border crossings and to advance with sweeping new constraints. He has vowed to restrict access to asylum at the U.S.-Mexico border and to embark on the most significant deportation effort in American history, which would likely trigger legal obstacles and opposition from Democrats in Congress. He has said he will use the National Guard, and, if required, federal soldiers, to accomplish his objective, and he has not ruled out establishing internment camps to process people for deportation. Trump has stated he would look for to end automatic citizenship for kids born to immigrants, a relocation that would run versus the long-running interpretation of the U.S. Constitution's 14th Amendment. He has likewise recommended he would withdraw protected legal status for some populations such as Haitians or Venezuelans. Trump says he will reinstitute the so-called travel ban that restricts entry into the United States of individuals from a. list of mostly Muslim-dominant countries, which stimulated. several legal battles throughout his very first term. A few of Trump's earliest appointments showed an urgency to. follow through on his migration agenda. Trump has named a. border czar, Tom Homan, and will make Stephen Miller, the. architect of his immigration plans, a White Home deputy chief. of staff. DRILLING AWAY Trump has actually pledged to increase U.S. production of nonrenewable fuel sources. by alleviating the allowing procedure for drilling on federal land. and would motivate brand-new natural gas pipelines. He has actually stated he. would reauthorize oil drilling in the Arctic National Wildlife. Refuge in Alaska. Trump has pledged to create a National Energy Council to. coordinate policies to enhance U.S. energy production that will be. led by his choice for interior secretary, North Dakota Governor. Doug Burgum. Whether the oil market follows through and raises. production at a time when oil and gas rates are reasonably low. remains to be seen. Trump has actually stated he will again pull the United States out of. the Paris Climate Accords, a framework for minimizing worldwide. greenhouse gas emissions, and would support increased nuclear. energy production. He would likewise roll back Democratic President Joe Biden's. electric-vehicle mandates and other policies targeted at minimizing. auto emissions. He has actually argued that the U.S. requires to be able to boost energy. production to be competitive in establishing synthetic. intelligence systems, which take in large amounts of power. TAX RELIEF. Along with his trade and energy agendas, Trump has actually assured to. slash federal guidelines that he states limitation job development. He. has actually pledged to keep in place a broad 2017 tax cut that he signed. while in workplace, and his economic team has actually gone over a further. round of specific and corporate tax cuts beyond those enacted. in his very first term. Trump has actually promised to reduce the business tax rate to 15%. from 21% for companies that make their products in the U.S. . He has actually said he would seek legislation to end the tax of. tips and overtime incomes to help waiters and other service. employees. He has vowed not to tax or cut Social Security. advantages. Trump has also said that as president he would pressure the. Federal Reserve to lower rates of interest - however would stop short. of demanding it. Most, if not all, of his tax proposals would need. congressional action. Budget analysts have actually alerted that the bevy. of tax cuts would swell the federal financial obligation. GETTING RID OF DIVERSITY PROGRAMS Trump has vowed to need U.S. colleges and universities. to defend American custom and Western civilization and to. purge them of diversity programs. He said he would direct the. Justice Department to pursue civil rights cases against schools. that take part in racial discrimination. At K-12 schools, Trump would support programs permitting. parents to use public funds for private or spiritual. instruction. Trump also wishes to eliminate the federal Department of. Education, and leave states in control of schooling. NO FEDERAL ABORTION BAN Trump selected three justices to the U.S. Supreme Court who. became part of the majority that got rid of Roe v. Wade's. constitutional defense for abortion. He likely would continue. to select federal judges who would uphold abortion limitations. At the exact same time, he has said a federal abortion ban is. unneeded and that the problem ought to be fixed at the state. level. He has actually argued that a six-week restriction favored by some. Republicans is overly harsh and that any legislation should. include exceptions for rape, incest and the health of the. mom. Trump has actually suggested he would not seek to restrict access to the. abortion drug mifepristone after the U.S. Supreme Court rejected. a challenge to the federal government's approach to controling it. He supports policies that advance in vitro. fertilization (IVF), birth control and prenatal care. A PUSH TO END WARS. Trump has been vital of U.S. support for Ukraine in its war. with Russia, and has stated he might end the war in 24 hours if. elected - although he has not said how he would achieve this. He has actually recommended Ukraine might need to yield a few of its. area if a peace offer is to be struck, a concept Ukraine has. regularly declined. Trump's choice for his nationwide security consultant, U.S. Agent Michael Waltz, was important of the Biden. administration's decision in November to enable Ukraine to utilize. U.S.-provided rockets to strike within Russian territory. Trump has likewise stated that under his presidency the U.S. would. fundamentally reassess NATO's function and NATO's mission. Trump named U.S. Senator Marco Rubio, a China hawk, as his. secretary of state, charged with carrying out his foreign policy. goals. Trump has actually backed Israel in its fight versus Hamas in Gaza but. has prompted it to wrap up its offensive. He can be anticipated to. continue the Biden administration's policy of equipping Israel. At. the exact same time, Trump is likely to promote historic. normalization of relations between Israel and Saudi Arabia, an. effort he made during his 2017-2021 presidency and which Biden. has likewise pursued. Trump has actually stated if he becomes president, he will stop the. suffering and destruction in Lebanon, however has actually not stated how he. will attain that. He has recommended building an iron dome - a huge. missile-defense guard comparable to Israel's - over the whole. continental United States. Trump has likewise floated sending armed forces into Mexico to. fight drug cartels and using the U.S. Navy to form a blockade. of that nation to stop the smuggling of fentanyl and its. precursors. His shift group has been drawing up lists of potential. high-ranking U.S. military officers to fire as part of a purge. of the Pentagon of those thought to be disloyal to Trump. EXAMINING OPPONENTS, AIDING ALLIES. Trump has vowed at times to use federal law enforcement. companies to examine his political foes, consisting of election. authorities, attorneys and party donors. Trump tapped previous Florida Chief law officer Pam Bondi as. his U.S. attorney general. Bondi has said those who brought. criminal charges against Trump should have trials of their own,. telling Fox News in 2023 that the district attorneys will be. prosecuted, the bad ones. Along that line, Trump has stated he will consider appointing. a special prosecutor to probe Biden, though he has actually not defined. the grounds for such an investigation. And he has actually said he would think about firing a U.S. attorney who. did not follow his instructions - which would constitute a break. with the longstanding U.S. policy of an independent federal law. enforcement device. Trump has actually stated he will consider pardoning all of those who. have actually been convicted of crimes in connection with the Jan. 6,. 2021, attack on the U.S. Capitol. In addition to criminal examinations, he has recommended. utilizing the federal government's regulative powers to penalize those he. deem critics, such as tv networks. PURGING THE FEDERAL BUREAUCRACY Trump would look for to decimate what he terms the deep state. -- profession federal workers he says are clandestinely pursuing. their own programs-- through an executive order that would. reclassify thousands of workers to enable them to be fired. That. would likely be challenged in court. He has actually said he will establish an independent federal government effectiveness. panel headed by billionaire supporter Elon Musk and previous. governmental prospect Vivek Ramaswamy to root out waste in the. federal government. The federal government already has watchdogs such as. the Office of Management and Budget, and private investigators basic. at federal firms. Trump would punish federal whistleblowers, who are. usually shielded by law, and would institute an independent. body to keep an eye on U.S. intelligence companies.
-
Indonesia province resumes search for 7 missing after landslide and floods kill 15
Indonesian rescuers are searching for 7 individuals still missing out on 4 days after torrential rain hit North Sumatra province, triggering flash flooding and landslides which killed 15 people, an authorities said on Tuesday. Eleven people were eliminated in landslides in Karo district, Padang Lawas district and Tapanuli Selatan district, and another 4 passed away in flash floods in Deli Serdang district after the bad weather condition hit on Saturday, catastrophe firm representative Abdul Muhari said. About a hundred rescuers along with cops and military were still looking for the 7 missing individuals, however they had been obstructed by persistent rain, Abdul said. It's still drizzling from the afternoon up until the night. This is the primary barrier while we attempt to locate the missing individuals, he stated, adding the search would continue until Saturday. The landslides and flash floods damaged houses, mosques, and rice fields. Road access was cut off to numerous villages, and excavators were being used in the look for victims and the missing. The catastrophe company warned people in North Sumatra province to prepare for potential floods in the coming weeks as more heavy rain is forecast, Abdul stated. Landslides are regular in Indonesia, especially in the rainy season. The risk of landslides is typically increased by deforestation and small-scale illegal mining operations in remote districts.
Iron ore to lose weekly value as weak demand and rising stocks weigh
The iron ore futures price continued to fall on Friday, and was set for a weekly loss. This is due to a deteriorating sentiment amid the sluggishness of spot purchasing and the bleak outlook in China, which is arguably its biggest consumer.
The May contract for iron ore on China's Dalian Commodity Exchange ended morning trading 0.74% lower, at 803.5 Yuan ($111.65), resulting in a weekly decline of 8.5%.
As of 0351 GMT the benchmark April iron ore traded on Singapore Exchange was $101.75 per ton lower, down 12% this week.
Analysts at ANZ Bank said that "weaker demand prospects increase the possibility of steel production reductions... less steel production equals lower demand for ore."
According to Mysteel & Lange Steel, the risks of a faltering ore market loomed when a few province steel associations released statements either calling for a reduction in steel production or vaguely proposing local market players work together to promote a healthy development of steel industry.
Stockpiles of iron ore are at their highest level in a year. ANZ analysts said that they expect iron ore to stabilize in terms of cost of production.
Mysteel data revealed that iron ore stock levels at 45 major Chinese port sites surveyed had increased by around 1% in the past week, to 142.9 million tonnes as of 15 March.
The China Iron and Steel Association, a state-sponsored organization, held a meeting on Thursday with representatives of several major steelmakers and research agencies, as well as the country's planners, to discuss a new mechanism for controlling steel capacity and evaluate capacity swap policies in the sector. However, it did not provide any further details.
The extended drop in home prices in February for the second largest economy in the world is also a factor in the sentiment, as it indicates a fragile property market.
Coking coal and coke were down by 1.92% each and 1.19% respectively.
The benchmark steel prices on the Shanghai Futures Exchange fell by a wide margin. Rebar fell 1.10%, while hot-rolled coils dropped 0.59%. Wire rods lost 1.32%, and stainless steel gained 0.8%.
(source: Reuters)