Iron ore futures fell on the Dalian and Singapore exchanges on Thursday, with traders still worried about weak profits from Chinese steelmakers, and fresh Covid-19 warnings in Shanghai and Beijing added to concerns.
The benchmark September iron ore contract on China’s commodity exchange ended day trading down 0.3% at 924.50 yuan ($138.33) a tonne, extending losses to a third day. .
On the Singapore Stock Exchange, the most active July contract for the steel ingredient dropped 0.8% to $143.65 a tonne.
Iron ore in Dalian is up 19% from this year’s low of RMB 779.50 per tonne hit on May 10, while the spot price for the 62% grade reference material in China jumped to 148.00. a ton on Thursday, based on data from consultancy SteelHome.
“Short-term demand for iron ore has increased more than expected, but steelmakers’ profits are weak,” analysts at Sinosteel Futures said in a note, citing high iron ore prices tightening steel margins.
Iron ore prices now appear to have limited upside potential, they said, with a determination by China, the world’s top steelmaker, to cut output further this year to curb emissions, also dampening optimism about demand. .
The sentiment of caution also remained after parts of Shanghai began imposing new Covid-19 lockdown restrictions on Thursday.
Entertainment venues and Internet cafes in Chaoyang, Beijing’s largest district, where more than 3 million people live, were ordered to close on Thursday after an outbreak involving bars was detected.
Source: CNN Brasil
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