Iron ore prices have fallen more than 7%, giving up all of their gains this year, with expectations that the domestic demand in China may decline.
Iron ore consumption has been affected by the decline in the Chinese real estate market as the country faces the spread of the “Covid-19” virus. However, some optimism to ease restrictions related to the virus over the past month will stimulate economic activity.
According to Bloomberg data, Iron ore futures traded in Singapore fell by 7.4% to $111.20/t, Dalian futures fell 8.3%, and Chinese coke futures fell by 7.1% to 2414.5 Yuan/t.
It comes after a decline in production rates for blast furnaces in Tangshan last week for the first time since mid-May, “My Steel” said in a note, according to “Bloomberg»: More factories in the steelmaking centre are reducing production for maintenance due to weak profit margins. China’s steel earnings index is down nearly 90% this month.