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 slumps on subdued China demand outlook for second half

07/29/2021 | 02:45am EDT
Piles of imported iron ore are seen at a port in Zhoushan, Zhejiang

(Reuters) - Iron ore futures in Asia fell on Thursday, pressured by the prospects of a slowdown in demand for the steelmaking ingredient in top buyer China, and despite tempered shipment expectations from its biggest producer, Rio Tinto.

The most-traded iron ore for September delivery on China's Dalian Commodity Exchange slumped 2.5% to 1,105 yuan ($170.67) a tonne by midday break, extending losses into a third straight session.

Iron ore's most-active September contract on the Singapore Exchange shed 3.5% to $188.60 a tonne by 0346 GMT.

Rio Tinto expects its iron ore shipment this year to be at the low end of the forecast range, which remains subject to weather and market conditions.

Australia's Fortescue Metals Group Ltd meanwhile beat its full-year shipment estimate with a total volume of 182.2 million tonnes, and set shipment guidance for fiscal 2022 at 180 million tonnes to 185 million tonnes.

BHP Group Ltd reported full-year iron ore production near the top end of its forecast range, thanks to record output at two mines in Western Australia.

This week's generally upbeat quarterly production reports from major miners come as China has intensified its de-carbonisation drive, asking steel mills to limit this year's output to no more than the 2020 volume.

"We think it is reasonable to expect second-half steel production growth in China will slow down meaningfully from the first half," JPMorgan analysts said in a note.

China's crude steel output in the first half grew nearly 12% compared with a year earlier.

However, JPMorgan expects Chinese demand to recover strongly in the fourth quarter, leading to a strong rebound in both steel prices and margins.

Construction steel rebar on the Shanghai Futures Exchange rose 0.5%, while hot-rolled coil jumped 1.4%.

Stainless steel advanced 1.1%.

Tight supply concerns pushed Dalian coking coal and coke higher, gaining 1.9% and 0.8% respectively.

(Reporting by Enrico Dela Cruz in Manila; editing by Vinay Dwivedi)

By Enrico Dela Cruz

ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BHP GROUP 0.59% 37.75 End-of-day quote.-11.03%
FORTESCUE METALS GROUP LIMITED 0.34% 14.75 End-of-day quote.-37.05%
GOLD 0.12% 1777.6 Delayed Quote.-7.03%
JPMORGAN CHASE & CO. 0.01% 152.98 Delayed Quote.20.37%
MSCI SINGAPORE (GDTR) -1.00% 6527.826 Real-time Quote.12.58%
RIO TINTO PLC -0.49% 4715.5 Delayed Quote.-13.95%
S&P GSCI GOLD INDEX -0.04% 1035.3984 Delayed Quote.-6.93%
SILVER 1.27% 22.816 Delayed Quote.-15.38%
SINGAPORE EXCHANGE LIMITED 0.10% 10.05 End-of-day quote.8.30%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.11% 6.47432 Delayed Quote.-0.21%
Latest news "Economy & Forex"
05:57pCanada's Aurora Cannabis to shut down a facility in Edmonton
05:43pStocks fail to rebound after Monday's sell-off
05:34pUtilities Shares Fall -- Utilities Roundup
05:34pThe WSJ Dollar Index Falls 0.05% to 87.79 -- Data Talk
05:34pEuro Lost 0.01% to $1.1728 -- Data Talk
05:34pSterling Gains 0.01% to $1.3659 -- Data Talk
05:33pEntergy estimates repair costs of up to $2.6 bln from Hurricane Ida
05:33pDollar Lost 0.17% to 109.22 Yen -- Data Talk
05:33pDogecoin Lost 3.68% to $0.202 at 5 p.m. ET -- Data Talk
05:33pDraftKings courts UK's Entain with $22.4 billion offer as U.S. sports betting spurs deals
Latest news "Economy & Forex"