Iron ore futures slip as demand fears persist on China’s Covid outbreaks

MANILA: Iron ore futures fell on Wednesday as top steel producer China struggled to control recent COVID-19 outbreaks, diminishing hopes of a rebound in demand for steel products and ingredients.

The steelmaking raw material’s most-active September contract on China’s Dalian Commodity Exchange ended the morning trade 0.7% lower at 890.50 yuan ($139.89) a tonne. On the Singapore Exchange, the front-month iron ore contract shed 1.7% to $153.05 a tonne. “Tighter epidemic controls announced last night in Guangzhou’s Huadu district and fresh peaks in Shanghai COVID-19 transmissions (reported) this morning have once again destabilized iron ore futures,” said Navigate Commodities analyst Vincent Chan.

Shanghai authorities warned on Wednesday anyone who violates strict lockdown rules will be dealt with strictly, while also rallying people to defend their city as its tally of new cases rebounded to more than 25,000.