The most-traded May iron ore on China's Dalian Commodity
Exchange fell as much as 3% to 900.50 yuan ($130.31) a
tonne, its weakest since March 9.
On the Singapore Exchange, benchmark April iron ore shed as much as 3.2% to $127.95 a tonne.
"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 Swiss 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 said.
China will again cut annual crude steel production in 2023,
marking the third year in a row that the government has mandated
reduced output, Bloomberg News reported, citing a person
familiar with the decision.
As part of the plan, China will also ban new steelmaking
capacity, the report added.
No official pronouncement has yet 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 "high
probability" that steel mills will maintain "a stable increase
in production" during the first half of 2023.
Rebar on the Shanghai Futures Exchange ended
morning trade 2.7% lower, hot-rolled coil shed 2.8%,
wire rod slumped 3.1%, and stainless steel dropped 1.8%.
On the Dalian exchange, coking coal and coke fell 3.4% and 2.1%, respectively.
(Reporting by Enrico Dela Cruz in Manila; Editing by Rashmi
Aich)
By Enrico Dela Cruz
March 16 (Reuters) - 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 uninspiring Chinese
property sector data.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.