- Write by:
-
Saturday, May 14, 2022 - 13:10:25
-
492 Visit
-
Print
Mining News Pro - The iron ore price headed for its biggest weekly drop since mid-February as China’s spreading virus restrictions and worsening property crisis prevented a recovery in demand.
The metal gained in Singapore on Friday but is down almost 8% this week.
China reported a slight increase in covid-19 cases, while officials denied the city will be locked down amid growing concern the capital’s response to its outbreak will intensify.
Dalian futures rose 3.4%, paring their weekly drop to 0.2%.
China has been trying to strengthen its economy hit by rolling out measures to help small firms, stabilize jobs and relax controls in the property market.
However, strict covid lockdowns are expected to “continue to weigh on industrial activity, resulting in weaker demand for metals,” ANZ Research said in a note.
Heavy rains in southern and southwest China weighed on short-term construction material demand, while falling raw material prices will no longer underpin steel prices, said Haitong Futures.
In the property market, Sunac China Holdings, the country’s fourth-largest developer, missed a bond payment this week. The latest default is spurring fears that there could be more to come, which would further weaken a sector that is vital for iron ore demand.
Iron ore has fallen around a quarter from this year’s peak in early March as the virus restrictions spread. The lockdowns are making it hard for the government to deploy infrastructure spending, and are occurring at a time of year when construction typically ramps up after winter.
“China’s virus-related restrictions are weakening the impact of support measures during the peak construction season and property indicators are down,” Australia & New Zealand Banking Group Ltd. analysts including Daniel Hynes said in a note. “Steel production could increase, though looming control measures are a downside risk.”
Still, demand is expected to improve in the medium-term as virus cases ease and Beijing implements policies to support growth, Huatai Futures said in a note.
Meanwhile, iron ore stockpiles across ports in China fell 2.5% from a week earlier on Friday, according to industry website Steelhome.
Short Link:
https://www.miningnews.ir/En/News/621311
Anglo American Plc said it is has received an unsolicited non-binding combination proposal from BHP Group.
A key measure of Chinese copper demand just sank to zero, another indication that global prices are not balanced with ...
Australia’s Fortescue on Wednesday logged a larger-than-expected decline in third-quarter iron ore shipments, following ...
Iron ore futures prices ticked lower on Monday, weighed down by diminishing hopes of more stimulus in top consumer ...
China’s state planner on Friday finalized a rule to set up a domestic coal production reserve system by 2027, aimed at ...
Chile’s SQM called another investors meeting at the request of its second-largest shareholder, Tianqi Lithium Corp., ...
Iron ore futures prices drifted higher on Thursday as the latest soft data from top consumer China triggered renewed ...
Vitol Group confirmed that it’s starting to rebuild a trading book for metals after a long stint out of the market, with ...
Copper traded near a 15-month high as supply concerns and brighter demand prospects triggered a slew of bullish calls on ...
No comments have been posted yet ...