Iron ore prices sank to an eight-month low on Thursday in the wake of concerns stretching from China’s economy, covid-19 and the tapering of Federal Reserve stimulus.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $132.66 a tonne, down 13.7% from Wednesday’s closing.
The high-grade Brazilian index (65% Fe fines) also fell 15% to $152.50 a tonne.
The most traded iron ore futures on the Dalian Commodity Exchange, for January delivery, closed down 7.2% to 763 yuan ($117.44) per tonne, after plunging to 8% earlier during the session.
Prices are more than 40% below a record high reached just three months ago. Mining stocks also slid, with BHP Group down more than 18% from the previous week, Rio Tinto Group down 16%, and Vale down 13%. Oil and copper also hit multi-month lows.
China’s steel consumption is expected to soften in the second half, especially in the construction sector, due to tightening property policy, the country’s steel association and analysts said.
Production of LME deliverable KAS-branded aluminium at Kazakhstan’s Eurasian Resources Group has reached the four-million-tonnes milestone
