Iron ore futures on the Dalian and Singapore exchanges fell on Thursday after a seven-session rally, as China struggled with a rise in Covid-19 infections, prompting traders to secure their profits. .
Economic growth in China, the world’s biggest consumer of iron ore and other steel inputs, is hitting a speed bump early in the fourth quarter amid worsening Covid-19 outbreaks, shortly after Beijing repeatedly reaffirmed its Covid-zero policy.
In the manufacturing hub of Guangzhou in southern China, millions of residents were told Wednesday to get tested as infections topped 2,000 for two consecutive days in the city’s worst outbreak so far.
January’s top-traded iron ore on China’s Dalian Commodity Exchange ended day trading down 1.4% at 675.50 yuan ($93.21) a tonne.
On the Singapore Stock Exchange, December benchmark iron ore fell 2.9% to $85.90 a tonne.
Dalian iron ore had hit a two-week high on Wednesday, while the Singapore contract traded close to $90 a tonne, supported by news of bond financing support for Chinese developers.
However, market optimism about the program quickly faded as investors sought more details and more evidence of support for struggling real estate developers.
Other Dalian steel inputs also fell, with coking coal and coke falling 2.8% and 3.1%, respectively.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
