Dalian and Singapore iron ore futures pulled back on Thursday after a seven-session rally as top steel producer China battled a rebound in COVID-19 infections, prompting traders to lock in profits.
Economic growth in the world’s biggest consumer of iron ore and other steelmaking inputs is hitting an early speed bump in the fourth quarter amid widespread coronavirus restrictions, after Beijing reaffirmed its zero-COVID policy.
In China’s southern manufacturing hub of Guangzhou, millions of residents were told on Wednesday to get tested, as infections topped 2,000 for two days running in the city’s worst outbreak so far.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 1 percent lower at 678.50 yuan ($93.46) a ton. – Reuters
