Iron ore futures rose on the Dalian Stock Exchange on Friday after a record 10-session drop, but prices in Singapore remained pressured by a bleak outlook for demand in China, the world’s biggest steel producer. .
The most traded iron ore contract for September on the Dalian Exchange showed volatility during the daily session and ended up 1% at 736 yuan ($109.90) a tonne.
For the week, the drop was 11%, the biggest since mid-February.
On the Singapore Stock Exchange, the steel ingredient contract for July dropped 1% to $115 a tonne.
On Thursday (23), ore rose 7.4% in Singapore, rebounding from the weakest close this year in the previous session, after Chinese President Xi Jinping pledged to take more effective measures to achieve economic development goals. and social of the country.
While “market confidence has been restored to some extent,” analysts at Sinosteel Futures said the absence of any additional and specific economic stimulus measures from Beijing will limit any ore price gains for the time being.
In China’s steelmaking hub, the city of Tangshan, 56 of 126 blast furnaces have been closed for maintenance, according to Sinosteel, as mills struggle to cope with falling margins amid weak demand and high inventories.
Covid-19 restrictions, which have put downward pressure on the real estate sector, and disruptions to construction activity caused by unfavorable weather are also headwinds for the Chinese steel sector.
Source: CNN Brasil
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