China's iron ore futures fell to the lowest level in the last week due to negativities in factories and crises in the real estate sector. DCIOcv1, the most traded May iron ore contract on the Dalian Commodity Exchange (DCE), fell 3.08% to 960.5 yuan ($133.74) per metric ton. Additionally, coking coal DJMcv1 fell 4.19% and coke DCJcv1 fell 3.58%.
On the Singapore Exchange, the March iron ore SZZFH4 benchmark fell 2.36% to $129.7 per tonne, its lowest level since January 23.
According to the comments of market analysts, the decrease in ore prices occurred due to the end of pre-holiday raw material stocking among producers and the increase in both shipments and port stocks.
Rebar SRBcv1 on the Shanghai Futures Exchange fell 1.86%, hot rolled coil SHHCcv1 fell 1.62%, wire rod SWRcv1 fell 1.19% and stainless steel SHSScv1 fell 1.7%.
The liquidation order issued by a Hong Kong court to real estate giant China Evergrande Group 3333.HK on Monday has put new pressure on the struggling real estate sector in China. According to analysts, this decision played an important role in the decrease in demand and the downward movement of prices.
In addition, it is thought that the crises in the real estate sector may delay the recovery that the China's market aims for this year.
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