Rio Tinto’s Q2 iron ore shipments miss after May train derailment
The world's largest producer of iron ore shipped 80.3 million tons of the steel-making commodity in the quarter.
The iron ore price retreated on Thursday as Chinese downstream demand remained muted, while investors fretted over cues that the world’s second-largest economy is contracting in the second quarter amid covid-fuelled chaos.
The most-traded iron ore futures on the Dalian Commodity Exchange for September delivery fell as much as 4.1% to 806 yuan ($119.99) a tonne, the lowest since May 19.
Benchmark 62% Fe fines imported into Northern China fell 1%, to $131.29 per tonne.
China is facing bigger economic difficulties than in 2020, with some indicators starting to weaken sharply since March, Premier Li Keqiang said at a national meeting on Wednesday, adding that the country should strive to achieve reasonable growth in the second quarter.
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“As steel mills’ profits are relatively low and with expectations of annual output controls, there’s limited room for further increase of molten iron production,” analysts with GF Futures wrote in a note.
GF Futures expected ferrous prices to be mainly driven by steel products demand in the next term, and iron ore prices to continue to fluctuate before consumption improves.
(With files from Reuters)
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