MANILA: Iron ore futures tumbled on Friday, with the benchmark price in Singapore collapsing below $80 per tonne, and the steelmaking ingredient led a brutal sell-off in China’s ferrous complex, spurred by a gloomy outlook for global steel demand.
The most-traded November iron ore contract on the Singapore
Exchange fell as much as 3.6% to $78.80 a tonne, the lowest since September 2020.
On China’s Dalian Commodity Exchange, the most-active January contract ended morning trade 4.2% lower at 629 yuan ($86.94) a tonne, after touching its weakest since July 22 at 622.50 yuan.
Both Dalian and Singapore benchmark prices were on track for sharp weekly and monthly losses amid mounting concerns over weakening global steel demand and top steel producer China’s economy, which has been hit by Covid-19 curbs and a property sector downturn.
The International Monetary Fund said on Friday it does not expect a quick resolution to the country’s property turmoil. It also cut Asia’s economic growth forecasts due to China’s sharp slowdown, global monetary tightening and rising inflation.
Steel demand in the European Union is expected to erode by 3.5% this year and fall 1.9% in 2023 due to soaring energy prices and a looming recession, industry group Eurofer said.
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