The most-traded iron ore contract for delivery in January 2023 on China’s Dalian Commodity Exchange ended daytime trade 0.6% lower at 730.50 yuan ($108.42) a tonne.
“The iron ore market remains on shaky ground,” ANZ commodity strategists said in a note. “Demand in China still faces headwinds from a real estate downturn and constraints on steel industry emissions.”
Chinese steel industry regulators and leaders remain committed to curbing annual output that began last year in line with the country’s decarbonization goals.
Covid-19 lockdowns and financial troubles facing Chinese property developers — a sector that accounts for about 40% of domestic steel demand, according to ANZ analysts — have also clouded the outlook for demand for both steel products and inputs.
(With files from Reuters)