• 139 days Could Crypto Overtake Traditional Investment?
  • 144 days Americans Still Quitting Jobs At Record Pace
  • 146 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 149 days Is The Dollar Too Strong?
  • 149 days Big Tech Disappoints Investors on Earnings Calls
  • 150 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 152 days China Is Quietly Trying To Distance Itself From Russia
  • 152 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 156 days Crypto Investors Won Big In 2021
  • 156 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 157 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 159 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 160 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 163 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 164 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 164 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 166 days Are NFTs About To Take Over Gaming?
  • 167 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 170 days What’s Causing Inflation In The United States?
  • 171 days Intel Joins Russian Exodus as Chip Shortage Digs In
New Breakthrough Could Transform Rare Earth Mining

New Breakthrough Could Transform Rare Earth Mining

Researchers at the University of…

EV Metal Index Soars To Record Heights

EV Metal Index Soars To Record Heights

The MINING.COM EV Metal Index,…

Why Chinese Rare Earth Prices Are Soaring

Why Chinese Rare Earth Prices Are Soaring

The prices of Chinese-sourced rare…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Industrial Metals

Iron Prices Fall Victim To Coronavirus Panic

Iron Prices Coronavirus

Benchmark iron ore prices fell on Wednesday after as China, responsible for more than 70 percent of the world’s seaborne iron ore trade, struggles to control the deadly coronavirus outbreak.

The Chinese import price of 62 percent Fe content ore dropped more than 7 percent to $86.84 per dry metric tonne, according to Fastmarkets MB, after trade resumed following the Chinese lunar new year break.

The number of confirmed cases jumped to almost 6,000, outstripping the figure in mainland China during the SARS outbreak of 2002–2003. The death toll climbed to 132.

BMO Capital said in a research note on Monday that Beijing’s response to the outbreak, assuming it can be brought under control, could be significant.

The investment bank believes the Chinese government ~6 percent growth target for 2019 “is likely non-negotiable in order to meet the doubling of per capita GDP promised by President Xi in 2020 versus 2010”:

And with consumption weaker, this will likely involve more fixed asset investment-heavy government spending.

As a result, we may see another push into infrastructure projects into mid-year, while property restrictions could be further eased. 

For metals and bulk commodity demand, we see a slightly weaker Feb-March than may have been anticipated, but limited changes to expectations for the year as a whole. 

Furnaces are blasting Last week economic data showed the country’s steelmakers produced just shy of 1 billion tonnes in 2019, the second record-breaking year in a row.

Related: Huawei Given The Green Light To Build 5G Network In The UK

China produces more crude steel than the rest of the world combined, reaching 996.3 million tonnes in 2019, up 8.3 percent over the prior year, according to government figures. During December, steelmakers churned out on average 2.7m tonnes per day, 12 percent higher than December 2018.

Production of steel products in China grew by nearly 10 percent from a year earlier to 1.2 billion tonnes in 2019. The China Iron and Steel Association said last week it expects domestic demand for steel to grow modestly in 2020 to roughly 890m tonnes.

Imports top 1 billion tonnes

Chinese imports of the steelmaking raw material topped 1 billion tonnes for the third year in a row as Beijing’s efforts to stimulate the economy pays off.

China’s iron ore purchases in December totalled 101.3m tonnes, up nearly 12 percent from July and 17 percent from last year customs data showed, marking the highest level of imports since September 2018.

Full year iron ore imports were the second best on record at 1.069 billion tonnes, up 0.5 percent from last year and within shouting distance of 2017’s record 1.075 billion tonnes.

The coronavirus scare is also impacting copper prices, which has seen a drastic drop since the outbreak hit mainstream media.

By Mining.com 

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment