Iron ore price at 2-week low as traders reassess demand prospects in China

The iron ore price fell to a two-week low on Thursday as traders reassessed demand prospects in China.

Iron ore and steel prices in China hit multi-month highs in January as markets rallied from early November on the back of Beijing’s stepped-up policy support for its ailing property sector and dismantling of strict covid-19 curbs.

Steel prices are “running strongly under the support of cost and positive expectations,” Huatai Futures analysts said in a note.

But analysts said the demand-side support for iron ore needed to be verified.

China’s imports and exports are facing an “extremely severe” environment due to rising risks of a global recession and slowing external demand, a government official said on Thursday.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $124.68 a tonne Thursday morning, down 2.2%.