Market News

By Katharine Gemmell

(Bloomberg) -- Iron ore sank to the lowest in more than five weeks — falling below $100 a ton — as poor industrial profits in China highlighted the nation’s economic weakness, although mills’ performance did improve.

Futures touched $99 a ton in Singapore, on course for a second weekly loss. As a whole, China’s industrial firms saw profits drop in November for a fourth month, putting them on track for the sharpest annual decline since records began in 2000. Still, steelmakers’ profitability ticked higher last month.

Iron ore has slumped 29% this year, hurt by the prolonged slowdown of China’s economy, particularly its property sector, despite repeated attempts by the authorities to draw a line under the crisis. At the same time, supplies from miners in Australia and Brazil — the biggest exporters — have been rising.

Iron ore futures dropped as much as 1.8% to $98.95 a ton, the lowest intraday price since Nov. 19, before trading at $99.10 at 1:44 p.m. local time. Steel futures in Shanghai were weaker.

In base metals, the picture was more mixed, with copper rising 0.5% on the London Metal Exchange after a two-day trading pause for a UK public holiday. Aluminum and zinc fell 0.5%

--With assistance from Jason Rogers.