Iron ore prices slide as stockpiles rise at Chinese ports
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The news: Benchmark iron ore prices have slumped the most since mid-2022 as inventories pile up at Chinese ports.
The numbers: Singapore iron ore futures fell as much as 7.3% to USD106.80 a tonne, Bloomberg reported. Futures in Dalian closed 5.3% lower, while steel contracts in Shanghai were also down.
On Monday, the ASX 200 tumbled 1.8% with large material companies leading the sell-off including BHP, Rio Tinto and Fortescue.
The context: Iron ore has tumbled by around a quarter from a peak in early January as China’s real estate and manufacturing activity remains under pressure. The annual National People’s Congress in Beijing, which concluded on Monday, offered few prospects to boost demand, even as inventories at ports have ballooned to the highest in a year.
Construction activity in the world’s second-largest economy has remained lacklustre amid a property debt squeeze, while hopes for a stronger pickup in construction after the Lunar New Year Holiday has not materialised.
The source: Bloomberg
