Iron ore price retreats on covid-19 concerns

Iron ore prices fell on Wednesday as concerns over covid-19 curbs and the approaching off-season for construction activity in China soured sentiment.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $123.39 a tonne during afternoon trading, down 2.3% compared to Tuesday’s closing.

The most-traded iron ore contract for May delivery on China’s Dalian Commodity Exchange ended daytime trading 0.4% lower at 693.50 yuan ($108.84) a tonne.

China is maintaining a zero-tolerance policy towards local covid-19 cases, moving quickly to quell any local outbreaks by imposing mobility restrictions.

“(Steel demand) is gradually shifting from the peak season to the off-season cycle, and consumption is expected to gradually pull back from the previous month,” Huatai Futures analysts said in a note.

Worldwide crude steel production dropped to 143.3 million tonnes in November from a year earlier but Chinese levels tumbled by 22% to 69.3 million tonnes, the World Steel Association data showed on Wednesday.