Iron ore futures posted losses on Friday, as China indicated that controlling Covid-19 outbreaks was still a priority, although for the week the steel ingredient remained on track for the highest rally. since March.
The most traded iron ore contract in September on the Singapore Stock Exchange fell 3.7% to USD 114.30 a tonne, after reaching its highest level since June 30, at USD 119.90 in the previous session.
On China’s Dalian Commodities Exchange, iron ore in September ended trading up 1.8% at 782 yuan ($116.11) a tonne, down from Thursday’s four-week peak. of 798.50 yuan.
China is adhering to its “dynamic Covid-zero” policy, state media said after a Communist Party meeting last Thursday.
“It seems to us that any change in Covid-zero policy will only happen when the authorities are convinced that the mutations are less virulent and the vaccines/drugs are proven to be more effective. It is unlikely to happen in the short term,” ANZ analysts said in a note.
Iron ore and steel markets suffered losses in the second quarter as the Covid-19 lockdowns in China dampened demand in the world’s biggest steel producer and consumer.
But iron ore has rallied this week, with the 62% grade material gaining about 15% on the spot market on Thursday at $117.50 a tonne, in response to widening steel margins and optimism. on demand prospects in the coming months.
On Friday, the price dropped by US$ 0.50 to US$ 117.
Source: CNN Brasil
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