Dalian iron ore futures closed more than 2% lower on Tuesday, a two-week low, as overseas demand for the steelmaking ingredient took a hit due to the coronavirus pandemic.
The most-active iron ore futures on the Dalian Commodity Exchange, the May contract, ended down 2.3% at 631 yuan ($89.36) a tonne, its lowest since March 24. During the session, the contract shed as much as 3% to 626 yuan a tonne.
"Iron ore demand in China is fine, but not overseas as some steelmakers in other countries are cutting production," a Shanghai-based trader said, adding that iron ore prices still face downward pressure.
Vessel-tracking and port data compiled by Refinitiv showed iron ore shipment from Brazil and Australia to China climbed to 68.6 million tonnes last month from 60.2 million tonnes in February.
Construction rebar futures on the Shanghai Futures Exchange for May delivery inched up 0.1% to 3,206 yuan per tonne.
"Rebar price recovery is set to be sustainable compared to early March when China's stimulus plan boosted sentiment," Argonaut Securities in Hong Kong wrote in a note.
The broker also noted that flat steel prices had recovered due to falling inventories and as sentiment towards the auto sector continued to improve.
Hot-rolled coil, used in cars and home appliances, gained 0.9% to 3,063 yuan per tonne.
Spot prices of iron ore with 62% iron content for delivery to China rose by $1.5 to $83 a tonne on Friday.
Other steelmaking raw materials gained, with Dalian coking coal rising 0.5% to 1,220 yuan per tonne and Dalian coke gaining 0.7% to 1,749 yuan per tonne.
Shanghai stainless steel futures rose 0.9% to 12,050 yuan a tonne.
The coronavirus pandemic had infected more than 1.32 million people globally and killed 74,087, according to a Reuters tally.
China's top developers are prising open their war chests to snap up land this year as local governments sell more prime real estate to boost revenues and smaller, distressed property firms look to offload assets as the coronavirus takes a toll.
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