Iron ore price decline

Read this article dated 24 May 2021:

https://www.abc.net.au/news/2021-05-24/markets-wall-street-dow-jones-asx/100159842

Iron ore prices decline

On the commodities markets, the iron ore price fell by 5 per cent to $US200.72 a tonne after a plunge in steel mill margins in China during the past two weeks.

That's despite global steel output up by 24 per cent in the year to April, and 7.5 per cent since April 2019.

"That mostly reflected China’s steel output growth, which grew 15 per cent relative to April 2019 (and April 2020). In fact, China’s daily crude steel output rate in April rose to the highest level on record," CBA commodities researcher Vivek Dhar said.

Mr Dhar said the iron ore price had been affected by concerns in China.

"Steel prices in China have declined on demand concerns and because Chinese policymakers have reiterated their concerns over rising commodity prices," Mr Dhar said.

Mr Dhar said steel output in China remained above pre-COVID levels in China, but globally was still sluggish.

See below another article on bloomberg;

https://www.bloomberg.com/news/features/2021-05-23/bad-bank-huarong-tests-china-s-financial-system-and-xi-jinping-s-control?srnd=premium-asia

DYOR