Iron-ore futures slide as investors monitor demand in China

6th May 2022

By: Bloomberg


Font size: - +

Iron-ore flipped to losses as risk aversion across financial markets escalated and investors assessed the demand prospects in top consumer China.

Stocks slid with bonds Friday as inflation, rising borrowing costs and China’s virus lockdowns depressed sentiment. The outlook for iron ore is being complicated by the country’s Covid-zero target.

At a meeting held Thursday, the Politburo reiterated its support for a lockdown-dependent approach to contain the virus. That follows President Xi Jinping’s bold commitment last week to boost infrastructure construction to rescue economic growth, which has come under pressure from the nation’s Covid strategy.

“The meeting held yesterday revolved mainly around epidemic control,” Wei Ying, a ferrous analyst at China Industrial Futures, said. “This indicates that restrictions will hold in the near future, which has sparked some concerns” about the impact on the economy.

Meanwhile, post-holiday demand for the steelmaking ingredient has picked up only slightly, according to a note by Holly Futures. Virus-related lockdowns have slowed down the movement of iron ore shipments, while overall market demand faces great uncertainty from the spread of Covid in China, it said.

Futures in Singapore fell 2.8% to $141.50 a ton, after closing 1.7% higher Thursday, as of 11.56 a.m. local time. Futures in Dalian slipped 1.6%. Steel rebar and hot-rolled coil declined in Shanghai.

Edited by Bloomberg


The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at

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
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?