Iron ore futures in China fell to their lowest level in nearly three months on Tuesday, as worries mounted over the economic impact of a fast-spreading coronavirus outbreak, while benchmark steel futures rose after the previous session’s selloff.
The Dalian Commodity Exchange’s most-traded iron ore contract, expiring in May, slumped as much as 6.1 percent to 569.50 yuan ($81.12) a ton, its lowest since Nov. 12, before recovering some lost ground to trade 1.2 percent lower.
Spot prices of the key steelmaking raw material have also declined, with a delay in resumption of construction activities after the Lunar New Year break amid the virus outbreak.
The benchmark 62 percent iron-content ore for delivery to China settled at $83.80 a ton on Monday, down 13.4 percent from $96.80 on Jan. 22, and the lowest since Nov. 15, based on data tracked by SteelHome consultancy.
Chinese markets had been closed since Jan. 24 for the Lunar New Year holiday, and authorities extended the break to Jan. 31 to contain the outbreak.
The death toll in China from the coronavirus rose by a new daily record of 64 on Monday to 425, the National Health Commission said. All of the new deaths were in central Hubei province, the epicentre of the outbreak. – Reuters