Global iron ore prices have been declining for the fourth consecutive trading session, marking the longest period of decline in the last three months. The main reason for this trend is concerns about worsening demand prospects from China, the world’s largest consumer of this commodity.
This is reported by Finway
Impact of the Economic Situation in China
Iron ore quotations have dropped to around 107 US dollars per ton, reaching the lowest level in over two weeks. Analysts link this to the release of data showing a slowdown in economic growth in China in April. Additional pressure on the market is created by a decrease in investment flows, observed against the backdrop of a global energy crisis that negatively affects both industry and end consumers.
Changes in the Steel and Export Market
The head of the black metals research department at GF Futures Co, Zhou Minbo, noted that the recent rise in steel prices has outpaced actual demand. She also emphasized that Chinese steel exports have begun to decline, as elevated prices are restraining foreign consumption. This, in turn, may further impact the future dynamics of iron ore prices.
“Chinese steel exports have also begun to decline, as high prices are restraining consumption abroad.”
According to the latest data at 5:57 Kyiv time, the price of iron ore has decreased by another 0.8%, reaching 107.35 dollars per ton.