BEIJING: Iron ore futures slipped on Monday after posting three straight weekly gains, as fresh Covid curbs in the world’s top steelmaker China sparked demand fears, with India’s decision to scrap export taxes on low-grade iron ore also weighing on prices.
The most-traded January iron ore on China’s Dalian Commodity Exchange shed 1.6% to 733.5 yuan ($102.41) a tonne as of 0236 GMT. On the Singapore Exchange, the benchmark December iron ore was down 3.7% at $95 a tonne.
Contracts on both the bourses had posted weekly gains for three weeks in a row since late-October, as China’s latest moves to shore up its flagging economy had brightened demand prospects.
However, concerns over near-term economic activity resurfaced after Beijing’s biggest district urged residents to stay at home on Monday as the city’s Covid case numbers rose, while at least one district in Guangzhou was locked down for five days.
Meanwhile, India scrapped export taxes on low-grade iron ore and on some intermediate steel products beginning Saturday, after months of complaints from miners and steel makers about loss of foreign sales opportunities.
Chinese steel benchmarks and other steelmaking inputs also reversed gains on Monday. The most-active rebar contract on the Shanghai Futures Exchange lost 1.9%, hot-rolled coil moved down 1.5%, wire rod slid 0.8%, while stainless steel nudged 0.7% up.
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