Friday, June 9, 2023
HomeHeadlinesDalian iron ore sinks to 16-week low

Subscribe

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

Dalian iron ore sinks to 16-week low

Dalian iron ore futures tumbled on Wednesday to their lowest in 16 weeks, while a sell-off resumed in Singapore, as worries grew about an oversupply of steel in China, the world’s biggest producer of the manufacturing and construction material.

Benchmark September iron ore on China’s Dalian Commodity Exchange DCIOcv1 ended daytime trade 6% lower at 709.50 yuan ($105.57) a tonne, extending losses to a ninth straight session. It plunged to 698.50 yuan earlier in the day, the lowest since March 1.

The steelmaking ingredient’s front-month July contract on the Singapore Exchange SZZFN2 was down 5.6% at $108.45 a tonne, as of 0706 GMT, after a one-day rebound from an eight-session sell-off.

Iron ore has wiped out its 2022 gains in Singapore.

In the spot market, the benchmark 62%-grade material bound for China traded at $117.50 a tonne on Tuesday, based on SteelHome consultancy data SH-CCN-IRNOR62, rebounding from a six-month low of $115.50 a tonne hit the day before.

“Markets are particularly worried that demand growth expectations linked to China’s pledge to boost infrastructure investment may not materialise, especially with China’s zero-COVID policy still in play,” said Commonwealth Bank of Australia analyst Vivek Dhar.

Worries remain about renewed restrictions dampening overall domestic demand, as China continues to detect new coronavirus cases day after day.

Disruptions to construction activity caused by heavy rains in some parts of China have also led to the piling up of steel inventory, prompting steel mills to idle blast furnaces to cut losses.

“Doubts over China’s future steel demand growth has meant that markets could no longer ignore current market conditions of oversupply in China’s steel sector,” Dhar said.

Construction steel rebar on the Shanghai Futures Exchange SRBcv1 fell 1.4%, while hot-rolled coil SHHCcv1 dipped 1.5%. Stainless steel SHSScv1 shed 0.6%.

Other steel inputs also remained under pressure, with Dalian coking coal DJMcv1 and coke DCJcv1 both slipping 0.5%.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

Trafigura publishes 2023 interim results showing a strong performance

Trafigura, a market leader in the global commodities industry, released its 2023 Interim Report today for the six-month period ended 31 March 2023. The results...

Globus Q1 results hit by weak dry bulk market

Globus Maritime Limited, a dry bulk shipping company, reported its unaudited consolidated operating and financial results for the quarter ended March 31, 2023. Revenue $8.6 million...

BW LPG appoints new CFO

BW LPG announced that it has appointed Ms Samantha Xu as Chief Financial Officer (CFO), effective 1 September 2023. Ms Xu has over 20 years...

Frontline Posts Highest First Quarter Results Since 2008

Frontline plc reported unaudited results for the three months ended March 31, 2023: Highlights Highest first quarter profit since 2008 of $199.6 million, or $0.90 per...

Diana Shipping posts slightly lower Q1 profit; takes out $123m in loans

Diana Shipping reported net income of $22.7 million and net income attributed to common stockholders of $21.3 million for the first quarter of 2023....

Celestyal Participates In Promotion Of The Tourist Destination Of Central Macedonia

Celestyal, the award-winning, number one choice for travellers to the Greek Islands and the...

Capesize, panamax gains drive Baltic index higher

The Baltic Exchange’s main sea freight index rose for a fourth straight session on...

Baltic rises to over 3-month peak on firm demand for larger vessels

The Baltic Exchange’s main sea freight index rose on Wednesday to scale its highest...

Baltic index logs best day in nearly 3 months

The Baltic Exchange’s main sea freight index posted its biggest single-day gain since mid-March...

Taiwan Shipping Firms Set to Hand Out Bumper Bonuses Again

Taiwanese shipping companies are handing out bumper mid-year bonuses despite a slump in global...

Iraklio port tender set for another delay

The opening of the binding financial offers for 67% of Iraklio Port Authority had been scheduled for Thursday, but this is no longer expected...

APM Terminals extends concession of Kalundborg container terminal

APM Terminals has reached an agreement with the Port of Kalundborg to extend the concession of Kalundborg container terminal by 10 years to 2033. In...

US West Coast port workers shut terminals in showdown over pay

The employers of more than 22,000 dock workers at U.S. West Coast seaports on Friday said the union representing those laborers “is staging concerted...

DP World Completes Terminal Expansion Project Vancouver Port

DP World has completed the AED954 million ($259.78 million) Centerm expansion project, increasing container throughput at the Port of Vancouver by 60 percent. The terminal...

DP World completes AED 954 million Vancouver port expansion

DP World and the Vancouver Fraser Port Authority have celebrated two historic events – the completion of the Centerm Expansion Project at DP World...