On the Singapore Exchange, the steelmaking ingredient's
benchmark June contract was up 1% at $99.55 a tonne, as
of 0306 GMT, after earlier hitting $96.90, its lowest since May
5.
SGX iron ore has slumped more than 20% since hitting this
year's peak at about $131 a tonne in mid-March, as the initial
euphoria over China's lifting of COVID-19 restrictions and
supportive measures for the struggling property sector had
abated.
The current macroeconomic backdrop has turned out
uninspiring, raising concerns about whether China could sustain
its 4.5% year-on-year GDP growth in the first quarter.
Data on Thursday showed new Chinese bank loans tumbled far
more sharply than expected in April, adding to worries that the
economy's post-pandemic recovery is losing steam and putting
pressure on the central bank to ease policy.
Meanwhile, many Chinese steel mills have reportedly lowered
their prices amid disappointment over steel demand during the
country's peak spring construction season.
"With the peak construction season coming to an end and with
the expected demand recovery not meeting expectations, there is
little upside for steel output and iron ore demand recovery in
the short to medium term," said ING commodities strategist Ewa
Manthey.
Rebar on the Shanghai Futures Exchange shed 0.9%,
hot-rolled coil lost 1.3%, wire rod dipped
0.4%, and stainless steel dropped 0.3%.
Coking coal and coke on the Dalian
exchange, however, gained 0.1% and 0.4%, respectively, in a
wobbly trade.
(Reporting by Enrico Dela Cruz in Manila)
By Enrico Dela Cruz
May 12 (Reuters) - Iron ore futures wobbled on Friday
and were on track for weekly losses due to waning optimism over
prospects for demand recovery in top steel producer and metals
consumer China, with additional pressure from rebounding
supplies from Australia and Brazil.
The most-traded September iron ore on China's Dalian
Commodity Exchange dropped as much as 3.6% to 685.50
yuan ($99.17) a tonne, its weakest since May 5, keeping it on
track for a sixth consecutive weekly decline.
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.