Iron ore prices on 11/5/2022: China iron ore lowest in nearly 2 months

Iron ore prices on 11/5/2022: China iron ore lowest in nearly 2 months

China’s iron ore prices fell as much as 7% to their lowest in nearly two months, on concerns about rising interest rates and sluggish domestic demand.

The US Federal Reserve raised interest rates by half a percentage point last week and said it could raise interest rates in the next two to three meetings and then assess how the economy and inflation are reacting before deciding. determine whether further increases are needed.
Meanwhile, low margins for steelmakers and overall steel output control have limited production ramping up and reduced demand for steelmaking components.
Iron ore for September delivery on the Dalian Commodity Exchange fell about 7% to 756 yuan ($112.71) a tonne, the lowest since March 16. At the close, iron ore fell 4.1% to CNY 779/ton, down for the third day in a row.
On the Singapore Exchange, iron ore for June futures fell 3.1% to $123.45 a tonne.
Steel prices in Shanghai also fell, with October rebar down 1.5% to CNY4,607/mt and hot-rolled coil down 1.7% to CNY4,698/mt.

On May 9, China’s central bank said it would step up support for a slowing economy, while closely monitoring domestic inflation and monitoring the policy adjustment of other economies. economic development.

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