Sluggish Chinese steel demand drags down iron ore prices

Iron ore futures in Dalian and Singapore fell to their lowest levels in more than four months on April 25 as weak steel demand in China forced mills to limit output, raising the possibility of a raw material oversupply. for steel production.
The most-traded iron ore for September on the China Dalian Commodity Exchange fell 1.9 percent at 711 yuan ($102.85) per ton, having previously touched 710.5 yuan, which was the lowest level. as of December 20, 2022.
The May iron ore contract on the Singapore Exchange fell 0.8% to $103.05 a tonne. Previously, it reached $102.35/ton, the lowest level since early December.
Several mills in China – the leading steel producing country, which are currently affected by weak steel demand and falling prices “have begun to actively limit production”, go into maintenance.
The World Steel Association said that China’s infrastructure sector could continue to benefit this year from projects initiated by the end of 2022, although the growth rate may weaken into the future. 2024 if no large-scale projects start this year.
Rebar on the Shanghai Futures Exchange fell 1.6%, hot rolled coil also fell 1.6%, while coil increased 2.5% and stainless steel increased 0.4%.
Coking coal and coking coal on the Dalian exchange fell 1% and 2.3%, respectively.
(Reuters April 26, 2023)