Thursday, March 30, 2023
HomeHeadlinesIron ore slides after China seeks advice on rising prices


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

Iron ore slides after China seeks advice on rising prices

Dalian and Singapore iron ore futures weakened on Monday after China’s state planner said last week it had sought expert advice on policy measures to deal with the recent rapid rise in prices of the raw material.

The most-traded May iron ore futures contract on China’s Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trading 2.13% lower at 897 yuan ($129.70) a tonne.

Meanwhile, on the Singapore Exchange, the benchmark April iron ore contract SZZFJ3 traded down 1.23% at $123.85 a tonne as of 0726 GMT.

The National Development and Reform Commission (NDRC) said late on Friday that its price monitoring unit had met with experts who said rising prices were driven by speculation and suggested authorities should strengthen market supervision.

They also advised “cracking down” on the spread of misleading pricing information, hoarding and speculation, according to a post on the NDRC’s official WeChat account.

“Some market participants with long positions liquidated their positions today to lock profits because of concerns that prices may face continued downward pressure following the news from NDRC”, said Huang Jing, an iron ore trader from Shanghai Yongjiu, a domestic trading agency.

Tangshan, China’s top steelmaking hub, said on Saturday that it would start another round of level 2 emergency response from March 4 to handle the forecast heavy air pollution, marking the second time in a fortnight it has implemented such measures.

Some local steel producers have been impacted by the move, consultancy Mysteel said in a report, without giving details. Emergency actions typically require steel plants to curb production.

Other steelmaking ingredients – coking coal and coke – as well as downstream steel products, also registered losses. Coking coal DJMcv1 slid 1.12% and coke DCJcv1 fell 0.9%.

Rebar on the Shanghai Futures Exchange SRBcv1 lost 0.92% to 4,210 yuan a tonne, hot-rolled coil SHHCcv1 declined 0.53%, wire rod SWRcv1 fell 1.29%. Stainless steel SHSScv1 inched up 0.52%.

China’s decision to set a modest 5% economic growth target for 2023, revealed at Sunday’s parliament opening, may also have knocked some of the optimism in commodity markets.

The lower-than-expected target means that macroeconomic stimulus policies this year may not be as strong as previously expected, analysts at Citic Futures said in a note.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

TORM announces secondary public offering of Class A common shares

TORM announced the commencement of a secondary public offering of 5,000,000 of the Company’s Class A common shares by OCM Njord Holdings S.à r.l.,...

Lomar Appoints Marius Bujor As Technical Director

Lomar Shipping, the shipping subsidiary of the Libra Group, has announced the appointment of Marius Bujor as its new Technical Director. Based in the...

EXMAR Reports Improved 2022 Results

During its meeting of 28 March 2023, the Board of Directors of EXMAR reviewed the results for the year ending 31 December 2022. HIGHLIGHTS 2022 ·...

Carnival Corp Posts Smaller-Than-Expected Quarterly Loss

Cruise operator Carnival Corp on Monday reported a smaller-than-expected quarterly loss and beat estimates for revenue, helped by resilient demand for leisure travel, higher...

Eva Birgitte Bisgaard steps down as chief commercial officer at Maersk Tankers

Eva Birgitte Bisgaard is stepping down from her role as chief commercial officer at Maersk Tankers. Christian M. Ingerslev, chief executive officer of Maersk Tankers,...

Wartsila sees role for ethanol in fragmented bunker fuel landscape

Wartsila is seeing a potential role for ethanol in the shipping industry’s multi-fuel future,...

Baltic index ticks up on firm demand for larger vessels

The Baltic Exchange’s main sea freight index edged up on Wednesday on higher rates...

Baltic index drops to a near 3-week low on lower vessel demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls on lower vessel demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Global Goods Trade Softening from 2022’s Record Level

International commerce soared to a record of $32 trillion in 2022, but goods trade...

APM Terminals to double capacity in Rotterdam port

APM Terminals, a subsidiary of Danish shipping company Maersk MAERSKb.CO, plans to double its capacity at Rotterdam Port, a spokesperson for the company said...

APM Terminals announces strategic partnership in Vietnam

APM Terminals engages in a strategic partnership with Vietnamese HATECO group for a project to develop two new deep-water berths at Lach Huyen port...

Russia-Bound Containers Stuck At Antwerp Port For Over A Year

Five Russia-bound containers from India’s Jindal Stainless Ltd (JSL) JIST.NS have been stuck at the Belgian port of Antwerp for around a year, unable...

Drewry: Port Throughput Index Down 4.5% Year-on-Year

The Drewry Container Port Throughput Indices are a series of calendar adjusted volume growth/decline indices based on monthly throughput data for a sample of...

Port of Los Angeles moves 487,846 container units in February

The Port of Los Angeles processed 487,846 Twenty-Foot Equivalent Units (TEUs) in February, a 43% decrease from the previous February’s all-time record. “February declines were...