Iron ore futures on the Dalian and Singapore exchanges fell on Thursday, as did steel benchmarks in China, as sentiment soured on heightened risk aversion sparked by fears of a banking crisis.
Also this year, a reported plan by China, the world’s largest steelmaker, to cut its annual crude steel output also weighed on iron ore and other steelmaking ingredients, along with tepid industry data. local real estate.
May’s top-traded iron ore on China’s Dalian Commodity Exchange closed daytime trade down 2.8% at 902 yuan ($130.75) per ton after hitting an all-time low of 897.50 yuan since March 9 .
On the Singapore Stock Exchange, benchmark iron ore fell 2.9% to $128.35 a tonne in April.
“International macro volatility has intensified,” Sinosteel Futures analysts said in a note.
Asian stocks posted losses and investors turned to the safety of gold, bonds and dollars as Credit Suisse became the latest target on fears of a banking crisis. [MKTS/GLOB]
Furthermore, “political risks continue to grow,” adding to the volatility of iron ore prices, Sinosteel analysts add.
China will reduce annual crude steel production again in 2023, marking the third consecutive year that the government has set a production cap under its emissions-cutting program, Bloomberg News reported on Wednesday.
No official announcement has been made about the plan.
In the absence of any official directive on production restrictions and with the overall positive outlook for China’s economic recovery this year, Sinosteel says there is a “high probability” that steelmakers will maintain “a steady increase in production” during the first half of 2023 .
Source: Terra
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