Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Iron ore sags on gloomy China demand outlook; stainless steel shines

07/30/2021 | 04:00am EDT
Workers are seen on the top of an iron ore pile as a machine works on blending the iron ore, at Dalian Port

(Reuters) - Asia's iron ore futures tumbled on Friday, collapsing under the weight of China's resolve to reduce steel output in line with its de-carbonisation drive, and slowing domestic demand for the construction and manufacturing material.

Supply concerns, however, pushed stainless steel higher to mark its biggest monthly gain on the Shanghai Futures Exchange since trading of contracts began in 2019.

Iron ore on China's Dalian Commodity Exchange closed daytime trading 8.1% lower at 1,027 yuan ($158.95) a tonne, with its monthly loss of nearly 8% the steepest since February 2020.

The steelmaking ingredient slumped 7.7% to $175.95 a tonne on the Singapore Exchange by 0715 GMT.

Spot iron ore traded below $200 a tonne on Thursday for the first time since May 28, SteelHome consultancy data showed.

"Prices fell as iron ore demand weakens in the face of policy to reduce China's steel output as a means to cut emissions," Commonwealth Bank of Australia commodities analyst Vivek Dhar said.

China has asked mills to limit this year's output to no more than the 2020 volume, after first-half production grew nearly 12% compared with a year earlier.

China's steel output curbs fuelled speculations that Beijing could be trying to shoot two birds with one stone, as the policy could also help reduce its dependence on Australian iron ore.

Dhar described it as a "very challenging" goal for the world's top steel producer, which depends on Australia for more than 60% of its iron ore imports.

Ties between the two countries have worsened after Australia called for an independent investigation into the origins of the novel coronavirus, irking China which imposed trade measures that hit Australian goods including coal.

Shanghai rebar rose 1%, while both hot rolled coil and stainless steel climbed 3.1%.

Dalian coking coal jumped 4.4%, but coke slipped 0.1%.

(Reporting by Enrico Dela Cruz in Manila, additional reporting by Sonali Paul in Melbourne, Editing by Sherry Jacob-Phillips and Uttaresh.V)

By Enrico Dela Cruz

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
COMMONWEALTH BANK OF AUSTRALIA 0.89% 101.7 End-of-day quote.23.86%
MSCI SINGAPORE (GDTR) -0.56% 6540.383 Real-time Quote.13.02%
SINGAPORE EXCHANGE LIMITED -0.30% 10.04 End-of-day quote.8.19%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.01% 6.4576 Delayed Quote.-0.58%
Latest news "Economy & Forex"
08:53aMEDIA-WHO seeks to revive stalled inquiry into origins of COVID-19 with new team- WSJ
08:47aChina tells energy firms to raise output to keep homes warm in winter
08:27aEssar Oil in talks to extend January UK VAT payment deadline
08:12aWang Yi Attends the Sustainable Development Forum 2021
08:12aWang Yi Talks about the Importance of the Global Development Initiative
08:12aAFRICAN DEVELOPMENT BANK : President Biden's Special Envoy for Climate, Secretary John Kerry Meets African Development Bank President, Akinwumi Adesina on Climate Financing for Africa
08:05aMEDIA-Naval Group vows to claw back millions for cancelled submarine deal- FT
08:02aMINISTRY OF FINANCE OF REPUBLIC OF SLOVENIA : Improving online consumer protection and consumer protection in tourism is vital
07:51aOman Air seeks oneworld alliance membership
07:43aChinese cities seize evergrande presales to block potential misuse of funds - ft
Latest news "Economy & Forex"