Thursday, March 30, 2023
HomeHeadlinesIron ore succumbs to risk aversion, report of China steel curbs

Subscribe

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

Iron ore succumbs to risk aversion, report of China steel curbs

Dalian and Singapore iron ore futures slumped on Thursday, along with steel benchmarks in China as sentiment soured, mirroring a broader risk aversion triggered by fears of a banking crisis.

Top steel producer China’s reported plan to again cut annual crude steel production this year also weighed on iron ore and other steelmaking ingredients, along with tepid Chinese property sector data.

The most traded May iron ore on China’s Dalian Commodity Exchange ended daytime trade 2.8% lower at 902 yuan ($130.75) a tonne after earlier hitting 897.50 yuan, its weakest since March 9.

On the Singapore Exchange, the benchmark April iron ore was down 2.9% at $128.35 a tonne, as of 0700 GMT.

“The international macro volatility has intensified,” Sinosteel Futures analysts said in a note.

Asian stocks slid and investors turned to the safety of gold, bonds and dollars, as embattled lender Credit Suisse became the latest focal point for fears of a banking crisis.

Also, “policy risks continue to increase”, adding to iron ore’s price volatility, Sinosteel analysts added.

China will again cut annual crude steel production in 2023, making it the third consecutive year that the government has mandated an output limit in line with its emission reduction programme, Bloomberg News reportedon Wednesday.

No official announcement has been made about the plan.

In the absence of any official directive on production restrictions, and with the overall outlook positive for China’s economic rebound this year, Sinosteel said there was a “high probability” that steel mills will maintain “a stable increase in production” during the first half of 2023.

Rebar on the Shanghai Futures Exchange shed 3.5%, hot-rolled coil also fell 3.5%, wire rod tumbled 4.6%, while stainless steel dropped 1.1%.

On the Dalian exchange, coking coal and coke slumped 4.5% and 3%, respectively.

Source: Reuters

Related Posts

Video

Finance & Economy
Shipping News
Ports

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...