Thursday, October 5, 2023
HomeHeadlinesIron ore slumps as China production cuts spark fears of demand drop


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

Iron ore slumps as China production cuts spark fears of demand drop

Dalian and Singapore iron ore futures slipped on Monday as traders became cautious of faltering demand after China’s top steelmaking hub Tangshan ordered local steel mills to reduce production as part of efforts to improve air quality.

The municipal government of north China’s Tangshan asked the 11 A-class steel mills to take initiative to cut production, while mills rated as B-class or below need to suspend 50% of their sintering equipment over July 1-31, analysts at consultancy Mysteel said in a note.

There were no statements on the websites and wechat accounts of Tangshan’s relevant governments. The municipal bureau of ecology and environment did not immediately respond to a request for comments.

A-class mills reduced production by 30% while the rest cut their sintering production by 50%, Mysteel said, adding that many local mills have abundant sintered ore inventory to sustain production for around 20 days.

The most-traded September iron ore on the Dalian Commodity Exchange (DCE) ended daytime trading 1.68% lower at 819 yuan ($112.94) a metric ton, the weakest since June 27.

The benchmark August iron ore on the Singapore Exchange was 1.12% lower at $107.85 a metric ton, as of 0736 GMT, the lowest since June 26.

Market speculation about government intervention in the iron ore market last Friday weighed on sentiment as well. No official statements were seen.

The weakness came despite an accident at an iron ore mine in northern China has raised concerns that Beijing could order wider safety checks on mines, disrupting domestic iron ore supply.

Other steelmaking ingredients similarly weakened, with coking coal DJMcv1 and coke DCJcv1 on the DCE down 1.08% and 0.8%, respectively.

Steel benchmarks on the Shanghai Futures Exchange regained ground lost earlier the trading session on market talk of a crude steel output reduction policy in 2023, possibly to be announced in the coming weeks.

Rebar SRBcv1 climbed 0.56%, hot-rolled coil SHHCcv1 gained 0.42%, wire rod SWRcv1 added 0.33% and stainless steel SHSScv1 was little changed.

The state planner-National Development and Reform Commission-did not immediately respond to a fax request for comment.

Source: Reuters

Related Posts


Finance & Economy
Shipping News

Golden Ocean: Renewal of share buy-back program

Reference is made to the announcement by the Board of Directors in Golden Ocean Group Limited (OSE/NASDAQ: GOGL) dated 4 October 2022 regarding the...

DHT Holdings announces share buyback

DHT Holdings announced that the Company during the third quarter has purchased 1,137,583 of its own shares, equivalent to 0.7% of its outstanding shares,...

Scorpio Tankers takes options to buy back over 20 ships

In a relevant SEC filing, Scorpio Tankers announced extensive vessel repurchases via sale and leaseback arrangements, including for the 2016-built LR2 product tanker STI...

TOP Ships Announces Reverse Stock Split

TOP Ships announced that it has determined to effect a 1-for-12 reverse stock split of the Company’s issued common shares. The Company’s shareholders approved the...

Carnival Earnings Outlook Misses While Fuel Costs Near 15-Year High

Carnival Corp. posted a profit for the first time since 2020 but issued a fourth quarter earnings outlook that missed Wall Streets’ expectations as...

ABS, Crowley Advance Augmented Reality Technology for Maritime

Crowley and ABS, a leading provider in maritime classification and advisory services, have entered...

Baltic index hits over 11-month peak on capesize strength

The Baltic Exchange’s main dry bulk sea freight index rose to its highest in...

MSC to buy 50% stake in Italian passenger rail group Italo

Shipping group MSC has entered into a binding agreement to acquire a 50% stake...

Higher capesize rates drive Baltic index higher

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

Baltic index snaps 4-day winning streak as capesize rates slip

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

Ukraine: 5 More Cargo Ships Head For Black Sea Ports – report

Five more ships are on their way to Ukrainian sea ports using a new corridor opened to resume predominantly agricultural exports, an alternative arrangement...

Piraeus Port reports strong H1 2023 results

The Piraeus Port Authority SA, which operates Greece’s biggest and busiest port, reported a 48.8-percent increase in pre-tax earnings for H1 2023 – 49.4...

Greece names Thessaloniki port operator preferred bidder for Volos port

Greece’s privatisation agency has named the operator of Thessaloniki port as the preferred bidder for acquiring a 67% stake in the port of Volos,...

Drewry: Port Throughput Index Down 2.1% in July

The Global Container Port Throughput Index fell 2.1% MoM in July 2023, with the small rises recorded in Africa and Oceania having been insufficient...

Vopak: Agreement with Infracapital on sale of Rotterdam chemical terminals

Vopak announces that it has reached an agreement with Infracapital on the sale of its three chemical terminals in Rotterdam (Botlek, TTR and Chemiehaven)...