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.
