Iron ore prices slumped on Tuesday as China’s steel demand season draws to an end with a disappointing outcome.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $89.36 a tonne Tuesday morning, down 2.3%, the lowest since November 2021.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 1.9% lower at 669.50 yuan ($91.64) a tonne, after touching its weakest since September 2 at 662.50 yuan.
“The peak season is coming to an end. The previously expected demand recovery did not meet expectations, let alone exceed expectations,” Huatai Futures analysts said in a note.
“The market’s confidence in steel prices has weakened.”
Uninspiring Chinese economic data and a sliding Chinese yuan added to the bearish mood prevailing after the Chinese Communist Party Congress.
“The Party Congress outcomes suggest little chance of a near-term change in policy,” said National Australia Bank economist Taylor Nugent, citing China’s zero-covid policy and a top governing body stacked with President Xi Jinping’s loyalists.
(With files from Reuters)