Arab Steel Summit
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Arab Steel Summit

Iron ore rebounds to $100 per ton despite increasing Chinese stocks

Iron ore prices turned higher during Monday’s trading following the release of mixed data on economic activity in China at a time when the world’s second largest economy is suffering from a real estate crisis affecting demand for steel.

The prices of iron ore futures contracts traded in Singapore for April delivery rose by 1.5% to $101.4 per ton, after falling by about 3% to $97 at the beginning of trading.

Iron ore prices are down by more than 25% since the beginning of 2024 in light of concerns about Chinese demand, as Beijing faces an extended crisis in the real estate sector, which relies heavily on steel, which has prompted factories to reduce production.

Iron ore stocks in Chinese ports increased to 140.9 million tons last week, recording their highest level in more than a year, according to Bloomberg.

ANZ Group analysts said in a note that indicators of weak demand for iron ore are still continuing, with Chinese smelters announcing a reduction in their production.

According to data from the Chinese National Bureau of Statistics released today, real estate investment declined by 9% during the first two months of 2024, despite investment in fixed assets growing by 4.2%, exceeding expectations of 3.2%.

The data showed that the country’s industrial production grew by 7% after increasing by 6.8% in December, compared to expectations of a growth of only 5%, while retail sales slowed to a growth of 5.5% during the same period compared to a growth of 7.4 in December.


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