China’s real estate crisis may lead to iron ore dumping

Goldman Sachs predicted in a note to the clients that the crisis gripping the Chinese real estate sector will help turn the iron ore market into a significant surplus during the second half of the year and drive prices down sharply.

After the market posted a deficit of 56 million tons in the first half of the year, the bank expects a surplus of more than 67 million tonnes of the metal for the rest of the year, reflecting the sharp slowdown in steel demand outside China.

The bank lowered its 3-month iron ore target to $70 a tonne from $90 and its six-month iron ore target to $85 from $110 a tonne.

The issue is that the metal is closely linked to China’s early real estate activity, the bank said, adding that the sector generates nearly a third of China’s steel and crude demand.

According to “Bloomberg” data, iron ore in Singapore rose by about 4% during the trading on 26 July 2022, before trimming its gains to trade at $109.05 per tonne.


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Arab Iron and Steel Union ( AISU ) was established in Algeria in 1971 as the first Arab union of Arab countries to be established under the umbrella of the Council of Economic Unity in the League of Arab States.

AISU is a non-governmental organization of a private nature, not of a political or commercial nature.

AISU works in the field of preparing studies, organizing courses and holding periodic conferences for the prosperity of the Arab iron and steel industry. The union includes a wide range of companies with multiple activities related to the iron and steel industry.

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