MINING.COM
Staff Writer | November 21, 2022 | 11:32 am
Concerns
over near-term economic activity resurfaced with China fighting numerous
covid-19 flare-ups. (Stock Image)
Iron
ore prices fell on Monday, as fresh covid-19 flare-ups in the world’s top
steelmaker China dented demand outlook, while expectations of rising supplies
after India’s decision to scrap export taxes on low-grade iron ore also weighed
on sentiment.
According
to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were
changing hands for $96.25 a tonne Monday morning, down 2.4%.
The most-traded January iron ore
on China’s Dalian Commodity Exchange slid as much as 2.6% but
pared losses to close at 745.5 yuan ($104.10) a tonne.
Concerns
over near-term economic activity resurfaced with China fighting numerous
covid-19 flare-ups. For Sunday, it reported 26,824 new local cases, nearing
April’s peaks. It also recorded two deaths in Beijing.
“Ferrous
futures are all dragged down by the worsening covid situation, and the prices
are likely under downward pressure as it seems to last,” a Chinese iron ore
trader said.
Chinese
steel benchmarks and other steelmaking inputs also reversed gains on Monday.
India
scrapped export taxes on low-grade iron ore and on some intermediate steel
products beginning Saturday, after months of complaints from miners and steel
makers about loss of foreign sales opportunities.
India
exported 24.79 million tonnes of iron ore lumps and fines last year and
shipped out 10.79 million tonnes of iron ore pellets, for which the
government has now rescinded all duties, according to Atilla Widnell, managing
director at Navigate Commodities.
“Indian
exporters will find some buyers, predominantly in China, who will be eager to
utilize low-grade iron ore fines and lumps in a compressed steel margin
environment,” Widnell said.
(With files from Reuters)