Dalian iron ore fell on Friday to its weakest level in more than five weeks, while the steelmaking ingredient hit a contract low in Singapore, dragged down by mounting concerns about demand as top steel producer China battles fresh COVID-19 outbreaks.
Widespread COVID-19 lockdowns and a property sector downturn in China, along with growing risks of a global recession as central banks hike interest rates aggressively to bring down inflation, have fuelled worries about demand for metals.
The most-traded iron ore, for January delivery, on China’s Dalian Commodity Exchange ended daytime trade 2.8 percent lower at 667.50 yuan ($96.70) a ton, after touching its weakest level since July 26 at 652 yuan earlier in the session.
On the Singapore Exchange, the benchmark October iron ore SZZFV2 was down 1.1 percent at $94.40 a ton after earlier hitting a contract low of $92.75.
The southwestern Chinese metropolis of Chengdu has imposed a lockdown of its 21.2 million residents, while other major cities including Shenzhen and Dalian also stepped up COVID-19 restrictions. (Full Story)(Full Story)
“There is a growing concern that the government’s stimulus package will be ineffective, as lockdowns dull the normal peak construction season in September and October,” said ANZ senior commodity strategist Daniel Hynes.
