The iron ore price fell on Friday as traders weighed demand
prospects in China.
According to Fastmarkets MB, benchmark 62% Fe fines imported
into Northern China were changing hands for $109 a tonne Friday morning, down
The most-traded iron ore contract for delivery in January 2023
on China’s Dalian Commodity Exchange ended daytime trade 0.6% lower at 730.50
yuan ($108.42) a tonne.
“The iron ore market remains on shaky ground,” ANZ commodity
strategists said in a note. “Demand in China still faces headwinds from a real
estate downturn and constraints on steel industry emissions.”
Chinese steel industry regulators and leaders remain committed
to curbing annual output that began last year in line with the country’s
Covid-19 lockdowns and financial troubles facing Chinese
property developers — a sector that accounts for about 40% of domestic steel
demand, according to ANZ analysts — have also clouded the outlook for demand
for both steel products and inputs.