Sunday, May 28, 2023
HomeHeadlinesIron ore sags as China property woes eclipse rebound in steel profits


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

Iron ore sags as China property woes eclipse rebound in steel profits

Dalian and Singapore iron ore futures fell on Wednesday as a crisis engulfing property developers in China, the world’s top steel producer, outweighed improving margins at mills.

Iron ore’s most-traded September contract on China’s Dalian Commodity Exchange DCIOcv1 ended volatile daytime trade 0.8% lower at 786.50 yuan ($116.44) a tonne.

On the Singapore Exchange, the steelmaking ingredient’s front-month September contract was down 1.5% at $113 a tonne, as of 0700 GMT, extending losses to a fourth session.

Sentiment has turned shaky after iron ore’s solid gains last week. A private survey showed on Monday that China’s July new home prices and sales volume both fell from a month earlier.

China’s property market, which is already grappling with a debt crisis and weak demand, has been further rocked recently by a mortgage boycott.

Analysts said confidence is unlikely to be quickly restored despite government support for the industry.

“The recovery will be slow and gradual, with two major uncertainties ahead: the impact of recent mortgage boycotts on homebuyers’ confidence (and) revival of more lockdowns,” J.P.Morgan analysts said in a note.

China’s ailing property sector and its decarbonisation goal, which entails cutting annual steel production for a second straight year in 2022, remain key concerns for iron ore traders, though rebounding steel margins offer support.

A total of 23 blast furnaces in China resumed production between July 21 and Aug. 1, prompted by improved margins, according to metals information provider SMM, among dozens of such facilities idled for maintenance amid weak domestic steel demand.

Others are expected to follow suit in coming days, it said.

Construction steel rebar on the Shanghai Futures Exchange SRBcv1 was virtually flat, while hot-rolled coil and stainless steel both gained 0.1%.

Other steelmaking ingredients bucked iron ore’s volatility, with Dalian coking coal up 0.8% and coke DCJcv1 gaining 1.6%.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Seanergy ‘well positioned to benefit from positive trend in Capesize market’

Seanergy Maritime Holdings Corp., announced its financial results for the first quarter ended March 31, 2023, and declared a quarterly dividend of $0.025 per...

Dorian LPG sees Q1 revenue more than double year-on-year

Dorian LPG reported its financial results for the three months and fiscal year ended March 31, 2023. Highlights for the Fourth Quarter Ended March 31, 2023 Revenues of $133.6 million.Time...

Navios Holdings Posts $14.5 Mln Net Income in Q1

Navios Maritime Holdings Inc., reported its financial results for the first quarter ended March 31, 2023. Navios Holdings owns (i) a controlling equity stake...

BW LPG posts ‘strongest quarterly performance on record’

BW LPG has recorded its ‘strongest quarterly performance on record’ in the first three months of 2023. The company was boosted by strong exports...

ONE, Wan Hai agree to pay civil penalties to FMC

Ocean Network Express (ONE) will pay a US$1.7 million civil penalty to avoid a formal investigation by the US Federal Maritime Commission (FMC) for...

Nikolaus H. Schües elected BIMCO President

BIMCO has elected Nikolaus H. Schües , CEO and owner of Reederei F. Laeisz,...

Baltic Dry Bulk Index Ends Worst Day In Over Three Months

The Baltic Exchange’s main sea freight index declined the most since mid-February on Thursday...

Maritime UK appoints new Chief Executive Officer

Maritime UK, the umbrella organisation for the UK’s maritime sector, has appointed Chris Shirling-Rooke...

Baltic dry bulk index extends slide for 10th straight session

The Baltic Exchange’s main sea freight index of shipping rates for dry bulk commodities...

Baltic index hits over two-month trough on lower rates across vessels

The Baltic Exchange’s main sea freight index slumped to its lowest level in over...

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...

Alexandroupolis port gets 24 million euros of EU funding

Greece has secured 24 million euros ($26 million) in European Union funding to upgrade its northern Aegean Sea port of Alexandroupolis, privatisation agency HRADF...

Port Hedland Iron Ore Exports Down 5% in April

Pilbara Ports Authority (PPA) has delivered a total monthly throughput of 57.7 million tonnes (Mt) for April 2023. This throughput was a two per cent...

APM Terminals Reveals $1 Billion Investment in Brazil

APM Terminals’ CEO Keith Svendsen has pledged an investment of about US$1 billion in the company's Brazilian operations up to 2026. The amount includes around...