Iron ore futures were mixed Wednesday, with Singapore’s benchmark price retreating from its five-month high as traders assess the demand outlook after China eased Covid restrictions and an impending recession global.
May’s top-traded iron ore on China’s Dalian Commodity Exchange finished the day trading up 0.7% at RMB 835.50 ($119.87) a ton after hitting a 16-month high of RMB 838.50 December.
On the Singapore Stock Exchange, the most active January contract for the steel ingredient fell 0.1% to $113.35 a ton. The contract jumped to its highest level since late July on Tuesday, above $114.
China announced on Monday that starting January 8, travelers arriving in the country will no longer need to go into quarantine. The country will also resume issuing visas for mainland residents to travel abroad.
The stringent Covid-containment policy of China, which is the world’s largest steel producer and iron ore consumer, curbed industrial activity and domestic demand and sparked public unrest last month.
“The positive impact of these easing measures should go beyond international travellers,” said Iris Pang, ING’s chief economist for Greater China.
“This should increase mobility within the country from the first quarter of 2023 and thus also consumption.”
However, spikes in China’s Covid cases and the holiday season leading up to next month’s Spring Festival could dampen iron ore and steel prices in the near term, analysts said.
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Source: Terra
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
