Iron ore price down as China’s covid, property woes weigh

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The iron ore price fell on Thursday pressured by worries over fresh covid-19 restrictions and property sector troubles in China squeezing demand for ferrous metals.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $95.89 a tonne Thursday morning, down 3.8%.

iron ore price

The most-traded iron ore contract, for January delivery on China’s Dalian Commodity Exchange ended daytime trade 1.2% lower at 675.50 yuan ($97.88) a tonne.

“Steel traders lack confidence in the market outlook,” Sinosteel Futures analysts said in a note.

One of China’s biggest cities, Chengdu, announced a lockdown of its 21.2 million residents as it launched four days of citywide covid-19 testing, as some of the country’s most populous and economically important urban centers battle outbreaks.

Nearly 70 Chinese cities, meanwhile, reported declines in new home prices last month, the most since the start of the pandemic, putting more pressure on local governments to quickly roll out additional support measures for homebuyers and developers.

(With files from Reuters)