Iron ore futures on the Dalian and Singapore exchanges fell on Tuesday, reversing gains made earlier in the session, after a Chinese government spokesman said the country would continue to reduce steel production. in this year.
In addition to concerns over the outlook for demand for the main steelmaking raw material, China’s steel production hub Tangshan has implemented another round of Covid-19 lockdowns in four districts for at least three days from Tuesday. , the local government said in a statement.
The most-traded iron ore contract for September on the Dalian commodity exchange ended day trading down 3.3% at 887 yuan ($139.18) a tonne after hitting a two-week high of 942 yuan at the beginning of the session.
On the Singapore Stock Exchange, May’s most active contract fell 2.3% to $151.35 a tonne.
China will cut crude steel output this year after already making a cut in 2021, in line with its goal of curbing carbon emissions, said a spokesperson for China’s state planner, the National Development and Reform Commission. .
Expectations of further measures to support the world’s second-largest economy, which is facing risks of a sharp slowdown due to lockdowns and headwinds caused by the war in Ukraine, have pushed up Dalian iron ore prices by more than 30% this year. year.
Construction steel rebar on the Shanghai Futures Exchange fell 0.4%, while hot-rolled coil ended the session flat. Stainless steel rose 3%.
Dalian coking coal fell 4.4% and coke fell 3.2%.
Source: CNN Brasil
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