China’s iron ore and steel futures fell on Tuesday, with demand still held back by concerns over China’s lingering Covid-zero policy and a struggling local real estate sector.
Downward pressures weighed more heavily on prices than news of a plan by China to ease restrictions on movement at the country’s border.
Caution also prevailed ahead of an expected interest rate hike by the US Federal Reserve this week.
January’s top-traded iron ore on China’s Dalian Commodity Exchange ended trading down 3.1% at 696 yuan ($99.24) a tonne.
Rebar on the Shanghai Futures Exchange was down 1.5%, while hot-rolled coils were down 2%.
“Regional lockdowns under the Covid-zero policy pose an ongoing risk of drag, and the housing market remains substantially weakened,” JPMorgan analysts said in a note.
Beijing has issued draft rules aimed at making it easier for some foreigners to enter China for visits to tourist sites along its border — after months of border closures due to the pandemic.
China also reported a lower number of new Covid-19 cases on Tuesday, with Beijing reporting no local cases for the fourth day in a row.
The October benchmark iron ore contract on the Singapore Stock Exchange reversed early session gains and fell 0.9% to $96.20 a tonne.
Source: CNN Brasil
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