Iron ore price fell amid renewed concerns about demand in China, where new covid-19 warnings threaten to derail the economy's reopening and steel margins are coming under pressure.
The benchmark steel raw material imported to northern China fell 1.94% to $141.19 per tonne.
The top-traded iron ore contract on China's Dalian Commodity Exchange in September finished day trading at 914.50 yuan ($136.83) per ton, down 1.7 percent.
Shanghai is facing an unexpected round of mass covid testing this weekend after several cases were discovered in the community, just 10 days after the lifting of a citywide lockdown that has hurt businesses.
“China remains a major source of uncertainty for global growth,” JP Morgan analysts wrote in a note. said. The reopening of the economy led to an increase in China's exports in May, while also increasing the risk of re-emergence of cases.
Meanwhile, spot iron ore in China has traded higher this week, reaching a seven-week high of $148 per tonne, as short-term demand picks up, according to SteelHome advisory data.
According to the data, China's iron ore imports increased by 3% year-on-year in May, after cuts in shipments from major suppliers eased.
Despite weak profits from steel mills, the country also increased its purchases due to the loosening of covid-related restrictions and Beijing's stimulus support to the struggling economy.
Comments
No comment yet.