Iron ore went on a roller-coaster ride, initially sinking well below $100 a ton only to flip higher following Chinese data that painted a mixed picture on steel demand.
Futures — which sank more than 13% last week — shed as much as 2.9% to $97 a ton in Singapore, then rebounded by more than that. While China’s overall growth was buoyed by strength in factory output and investment at the start of the year, nationwide steel production was only marginally higher in the first two months.
Iron ore is still down by more than a quarter since the start of the year, making it one of the weakest performers among major commodities. The slump has been driven principally by concerns about demand in China, where officials are battling a prolonged crisis in the nation’s steel-intensive property sector. Against that backdrop, some mills have been reducing production.
