Iron Ore: A Bad April For Prices
As Beijing labors to reign in excess capacity, China’s steel output in March still managed to hit a record high — 72 million tons. As one might guess, that is stoking worries about a supply glut and pressuring pricesChina.
Reuters reports that China’s steel and iron ore prices extended losses Monday as speculators excited bullish positions. The newswire reports that iron ore and steel are on track for their worse monthly performance since May 2016.
…rising inventories and expectations that demand would be slow as Beijing tries to cool its red-hot property market has hammered prices, snuffing out months-long rally.
Iron ore and steel are on track for their worst monthly performance since May last year.
… Iron ore on the Dalian Commodity Exchange was down 3.3 percent at 493.5 yuan ($71.66) a tonne, as of 0344 GMT. Earlier in the session, prices hit 491 yuan, their lowest since Jan. 10.
The most-active rebar on the Shanghai Futures Exchange slipped 1.35 percent to 2,911 yuan ($422.68) a tonne. It touched 2,879 yuan last Thursday, its weakest in more than two months.
Over at Nikko Asset Management, analyst Stefan Hansen recently weighed in on the matter, writing that iron ore prices will be driven by Chinese reforms.
Shares of big mining companies that produce the iron ore and other commodities that China once gobbled up inched lower Monday. Brazil’s Vale (VALE) dipped 0.23% to $8.70 a share and BHP Billiton (BHP) sat unchanged at $36.09 a share, while Rio Tinto (RIO) inched 0.02% lower and Freeport-McMoran (FCX) fell 0.Iron3%.