Futures for iron ore in China has stabilized on Tuesday at around 750 yuan (about 106 USD), after falling 3.8% in the previous session amid lower demand for steel due to the slowdown in construction caused by bad weather and the outbreak of coronavirus.
the Spot price of ore with a content of 62% iron delivered to China on Monday set at the level of 101 dollars per ton, down by 2.9% compared to 104 US dollars on 2 June.
"the Current demand for steel products weakened and apparent consumption is falling, and the off-peak season has a large impact on the market", - stated in the note by Huatai Futures.
According to Huatai, shipments of iron ore from Brazil, the second largest supplier to China, may increase in the coming months after the resumption of mining in the South American country.
the supply of steelmaking raw materials sent to China in June was 83,24 million tons compared to 93,15 million tons a month earlier, data showed on tracing collected Refinitiv.
Earlier today, the Committee of experts on logistics in China (CSLPC) reported that the index of business activity in the steel sector of China (PMI) declined by 1.6 points in may to 49.3 in June, reflecting a slow recovery in the steel industry after coronaries.
CSLPC notes that higher prices put pressure on margins of steel companies. Prices of imported iron ore are likely to have a downward trend in the second half of this year.
