Iron ore futures in China slid more than 4% on Thursday (26/05/2022) with bearish demand stagnant, as investors fretted over hints that the world's second-largest economy contracted in the second quarter amid the Corona virus turmoil.
Speaking at a national meeting on Wednesday (25/05/2022), Chinese Premier Li Keqiang said that China faces greater economic challenges than 2020, with some indicators starting to weaken sharply since March (2022). Keqiang added that China should strive to achieve sufficient growth in the second quarter of the year.
"There is limited room for an increase in smelted iron production as steelmakers' profits are relatively low, as well as expectations for annual production controls," GF Futures Firm analysts wrote in a note. comment is made.
The firm also predicts that iron prices will mainly be driven by the demand for steel products in the upcoming period, so iron ore prices may continue to fluctuate before consumption returns to a good level.
Top-traded iron ore futures for September deliveries on the Dalian Commodity Exchange DCIOcv1 index fell 4.1% to Yuan 806 (US$120) per tonne, the lowest since May 19 (2022). At 03.30 am Greenwich it was 821 Yuan per ton, down 2.3%.
Dalian coking coal prices fell 1.6% to Yuan 2,451 per tonne on the DJMcv1 index, while coke futures fell 1% to Yuan 3,229 per tonne in the DCJcv1 index.
For October deliveries, the Shanghai Futures Exchange's SRBcv1 index of structural steel rebar remained stable at Yuan 4,498 per tonne.
The SHHCcv1 index for hot rolled coil futures used in the manufacturing sector fell 0.2% to Yuan 4,627 per tonne.
Futures for June deliveries on the Shanghai stainless steel SHSScv1 index fell 0.4% to Yuan 18,530 per tonne.
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