Iron ore continues fall while China economy shows signs of recovery
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The news: Iron ore prices slid further to below USD100 ($152) a tonne before China released new industrial production data that revealed some signs of economic recovery.
The numbers: Iron ore futures, which plunged more than 13% last week, initially fell 3% to USD97 a tonne in Singapore early on Monday, before rebounding to USD101 by 2:00pm AEDT.
Stockpiles of iron ore at Chinese ports reached 140.9 million tonnes last week, the highest level in over a year.
China’s latest industrial production figures beat estimates as output rose 7% during January to February compared to the same period last year. Fixed-asset investment growth also accelerated to 4.2% and retail sales increased 5.5% year on year.
The context: Iron ore has tumbled by around a quarter from a peak in early January as China’s steel-intensive property sector battles a prolonged crisis, with construction activity remaining lacklustre.
New data from China, the world’s biggest iron ore importer, revealed that factory output and investment boosted economic growth as the start of the 2024 calendar year, while consumer demand remained muted.
The sources: Bloomberg, National Bureau of Statistics of China
