China’s iron ore prices reversed course from a six-week high on concerns that Chinese demand will weaken due to the instability problems of some of the country’s top real estate companies.
Stainless steel is also the focus of the iron and steel market, with Shanghai futures trading on stainless steel futures falling to their lowest level since mid-July on demand concerns. weak due to the sharp increase in inventories in China.
Specifically, the price of iron ore for May futures on the Dalian Commodity Exchange ended December 9 down 3.2% to 642.50 yuan ($101.29)/ton, ending a 3-session streak. previously increased by the new stimulus of the Chinese Government.
Iron ore for January delivery on the Singapore Exchange also fell 2.5% to 109.70 USD/ton.
“The outlook for the iron ore market is challenging,” said ANZ commodity strategists. “Given the constraints on China’s steel industry, demand for iron ore is likely to soften. However, supply constraints combined with stability in China’s real estate sector should support prices not to fall sharply.”
Earlier this week, China’s Politburo vowed to promote the healthy development of the real estate sector. This statement came shortly after China’s central bank announced to cut banks’ reserve ratio to boost economic growth – which is slowing.
“With China setting its highest emissions target by 2030, restrictive measures on the steel sector are seen as the most effective way to achieve that goal,” said ANZ analysts. .

The price of iron ore imported into China, spot goods at this country’s seaport, on December 8 was trading at $111/ton, also down from a six-week high of $111.50 reached yesterday. 7/12.
For steel, the price of stainless steel for January term on the Shanghai trading floor ended the last session down 4.5%; rebar dropped 3%, while hot rolled coil lost 3.3%.

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