Iron ore prices fell on Wednesday as China, the biggest steelmaker, struggled to control recent Covid-19 outbreaks, dampening hopes of a rebound in demand for iron ore products and ingredients. steel.
September’s most active steel raw material contract on China’s Dalian Exchange ended day trading down 1.5% at 884 yuan ($138.90) a tonne.
“Tighter epidemic controls announced last Tuesday night in Guangzhou’s Huadu district and further spikes in Covid-19 transmissions from Shanghai reported early Wednesday morning have once again destabilized iron ore futures” , said Vincent Chan, an analyst at Navigate Commodities.
Shanghai authorities warned on Wednesday that anyone violating strict lockdown rules will be dealt with harshly, while urging people to defend their city as the new case count soars to more than 25,000.
Dalian iron ore has fallen by nearly 5% since peaking at 944.50 yuan a tonne on April 6, when traders’ hopes of additional stimulus to prop up China’s economy were high.
Traders largely ignored official data showing China’s iron ore imports fell 14.5% in March from the same month a year ago as rains in Brazil, the main supplier, hampered shipments.
Chinese steel futures reversed previous gains as Beijing sought to ease restrictions on transporting key production materials.
Construction steel rebar on the Shanghai Futures Exchange fell 0.8%, while hot-rolled coil lost 0.4%.
Source: CNN Brasil
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