Iron-ore slump deepens on China demand anxiety, supply pressure
Iron-ore futures wobbled on Friday and were on track for weekly losses due to waning optimism over prospects for demand recovery in top steel producer and metals consumer China, with additional pressure from rebounding supplies from Australia and Brazil.
The most-traded September iron ore on China's Dalian Commodity Exchange dropped as much as 3.6% to 685.50 yuan ($99.17) a tonne, its weakest since May 5, keeping it on track for a sixth consecutive weekly decline.
On the Singapore Exchange, the steelmaking ingredient's benchmark June contract was up 1% at $99.55 a tonne, as of 03:06 GMT, after earlier hitting $96.90, its lowest since May 5.
SGX iron ore has slumped more than 20% since hitting this year's peak at about $131/t in mid-March, as the initial euphoria over China's lifting of Covid-19 restrictions and supportive measures for the struggling property sector had abated.
The current macroeconomic backdrop has turned out uninspiring, raising concerns about whether China could sustain its 4.5% year-on-year GDP growth in the first quarter.
Data on Thursday showed new Chinese bank loans tumbled far more sharply than expected in April, adding to worries that the economy's post-pandemic recovery is losing steam and putting pressure on the central bank to ease policy.
Meanwhile, many Chinese steel mills have reportedly lowered their prices amid disappointment over steel demand during the country's peak spring construction season.
"With the peak construction season coming to an end and with the expected demand recovery not meeting expectations, there is little upside for steel output and iron ore demand recovery in the short to medium term," said ING commodities strategist Ewa Manthey.
Rebar on the Shanghai Futures Exchange shed 0.9%, hot-rolled coil lost 1.3%, wire rod SWRcv1 dipped 0.4%, and stainless steel SHSScv1 dropped 0.3%.
Coking coal and coke on the Dalian exchange, however, gained 0.1% and 0.4%, respectively, in a wobbly trade.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...
VISIT SHOWROOM
M and J Mining are leading suppliers of physical support systems as used by the underground mining industry. Our selection of products are not...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
