Iron ore price slumps to three-week low on weak China demand, strong global supply
Property investment in China fell 10.1% in the first half of 2024 from a year earlier.
The iron ore price dipped on Wednesday amid limited trading activity due to the absence of Chinese market participants.
“With Chinese participants absent on May 1-4 for the Labor Day holiday, trading activity has been very limited so far this week, further depressing demand,” Fastmarkets said in a note.
Benchmark 62% Fe fines imported into Northern China fell 1.76%, to $143.42 per tonne.
Moody’s Investors Service said the persistence of weaker mining production and volume constraints will exacerbate tight markets and elevate the prices of many metals in 2022.
Covid-19 infections among workers have created labour challenges in key mining countries, including Australia and South Africa.
Furthermore, weather-related disruptions, including heavy rainfall in Brazil, are impacting companies’ output.
Anglo American reported a 10% year-on-year decrease in first-quarter production and lowered its full-year platinum group metals, iron ore and metallurgical coal production guidance for the year.
Rio Tinto’s Pilbara iron-ore segment reported a 6% year-on-year decline in production and an 8% decline in shipments in the first quarter.
Vale maintained its iron-ore production guidance for this year at between 320-million and 335-million tonnes, despite the challenges faced in the first quarter when heavy rainfall temporarily halted production at the Southern and South-eastern systems and led to stoppages of railway transportation in the Northern system.
