Iron ore prices continue to fall due to reduced Chinese demand. Contract prices for ore with an iron content of 63.5% for delivery to the Chinese port of Tianjin fell to $98.5 per tonne on Friday, hitting the lowest level since November 2022.
Trading Economics notes that concerns remain regarding the Chinese real estate market - one of the main consumers of metal products.
Housing prices in the People's Republic of China have been declining for the past 12 months. Beijing is implementing various support measures, but so far they do not have a significant impact on investment and construction activity, indicates the network resource.
Meanwhile, steel production in China in April 2023 decreased by 1.5% in annual terms and 3.2% on a monthly basis, up to 92.6 million tons.
Trading Economics global macroeconomic models and analysts' forecasts cited by the resource suggest a decrease in the cost of iron ore to $96.76 per ton by end of the quarter and up to $89 per ton in 12 months.
