Iron ore markets are delicately poised as traders weigh up Beijing’s promises of economic stimulus with the ongoing pursuit of its zero COVID-19 strategy.
The volatility across iron ore markets has intensified this week amid concerns that a slowdown in China’s property sector, exacerbated by persistent COVID-19 restrictions, is hurting demand for the steel-making ingredient.
The soft demand for iron ore has sunk prices over the past fortnight as traders weigh up the likelihood of more economic support from Beijing. Blast furnace rates among the 247 Chinese steel mills tracked by Mysteel remained unchanged at 90.15 per cent between June 10 and 16, compared to the week prior, ending a seven-week rally.Bloomberg
China’s technology hub Shenzhen became the latest city to endure mass testing and the lockdown of some neighbourhoods as the country’s COVID-19 outbreak shifts to its south coast.