Thursday, February 2, 2023
spot_img
HomeHeadlinesDalian iron ore hits 1-year low

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

Dalian iron ore hits 1-year low

Dalian iron ore futures hit a one-year low on Wednesday as demand worries intensified due to China’s curbs on its steel output and a worsening liquidity crisis in the country’s property sector.

The most-traded January iron ore contract on the Dalian Commodity Exchange ended daytime trading 4.6% lower at 536.50 yuan ($83.85) a tonne, after touching 518.50 yuan earlier in the session, its weakest since Nov. 9, 2020.

On the Singapore Exchange, the most-traded December contract was down 4% at $87.20 a tonne, as of 0721 GMT, after initially falling as much as 6.9%.

“(China’s steel) production restrictions have suppressed expectations for winter (iron ore) storage and replenishment,” analysts at Zhongzhou Futures Co Ltd wrote in a note. “The scope of limited production during the heating season has expanded, (while) blast furnace maintenance has increased.”

Loose supply and weak demand suggest portside iron ore inventory in China, which swelled to a 31-month high of 145.10 million tonnes last week according to SteelHome consultancy data, will continue to accumulate, they said.

A deepening liquidity crisis in the Chinese property sector, which accounts for about a quarter of domestic steel demand, added to the bearish mood ahead of a deadline for cash-strapped China Evergrande Group to make an offshore bond coupon payment on Wednesday.

“Increasing risks of weaker demand from the Chinese property sector saw iron ore futures push lower,” said Daniel Hynes, senior commodity strategist at ANZ.

The spot price of benchmark 62%-grade Australian iron ore for delivery to top steel producer China hit an 18-month low of $93 a tonne on Tuesday, SteelHome data showed.

Construction steel rebar on the Shanghai Futures Exchange fell 1.2%, while hot-rolled coil SHHCcv1 shed 1.7%, both trimming the day’s losses.

Stainless steel reversed early losses and ended 0.6% higher.

Dalian coking coal slid 3.2% and coke DCJcv1 slumped 3.3%.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Wartsila: A challenging year with strong annual growth

HIGHLIGHTS FROM OCTOBER–DECEMBER 2022 Order intake decreased by 24% to EUR 1,638 million (2,150)Service order intake increased by 6% to EUR 791 million (747)Net sales...

Hapag-Lloyd achieves extraordinarily strong result in its anniversary year 2022

On the basis of preliminary and unaudited figures, Hapag-Lloyd has concluded the 2022 financial year – in which it celebrated its 175th anniversary –...

Bahri sees profits soar in 2022

Saudi Arabia’s Bahri has seen its profits soar by over 400% in 2022 following a boom in tanker rates, boosting the shipping giant’s oil...

Euronav Files Second Arbitration Against Frontline

Euronav NV hereby informs its shareholders that on 28 January 2023 it has filed an application request for arbitration on the merits in relation...

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury...

Baltic index falls to over 2-year low as larger vessel rates slide

The Baltic Exchange’s dry bulk sea freight index fell to its lowest since June...

Baltic index logs worst month in 3 years

The Baltic Exchange’s main sea freight index registered its biggest monthly percentage fall in...

Baltic index snaps 9-day losing streak as panamax, supramax rates rise

The Baltic Exchange’s main sea freight index snapped its nine-session losing streak on Tuesday,...

Cyprus shipping making waves – report

Cyprus shipping, the steady driver of the economy, is sailing for better times, having...

Luxury Cruise Market Holds Much Promise For Greek & East Med Hidden Gem Destinations

The appeal of Greece and the East Mediterranean as an ideal region for luxury cruising will be one of the main highlights of the...

Port of Los Angeles proposes cruise terminal project

The Port of Los Angeles is inviting comments on a draft Request for Proposals (RFP) for the future development of a new Outer Harbor...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...