Prices for iron ore cargoes with a 63.5% iron ore content for delivery in Tianjin have retreated towards $105 per tonne, moving further away from the nearly one-month peak of $110.5 reached on May 18, mainly due to reduced steel production in China and a decrease in supply disruptions. As concerns about the outlook of China's property sector persist, the price of iron ore is expected to further weaken in the upcoming months, potentially reaching around $95 per tonne. Despite the introduction of various support measures by Beijing, these initiatives have not yet translated into noticeable increases in investment or construction activity. The most recent economic data revealed that crude steel output from China fell 1.5% to 92.6 million tonnes in April. Additionally, the country's housing prices fell 0.2% year-on-year, continuing the downward trend for the 12th consecutive month, and property investment declined 16.2%, representing the largest drop since November 2022.
Prices are back down to $97 today and look to retreat back to $80 mark over the next 3 months
FEX Price at posting:
24.0¢ Sentiment: Sell Disclosure: Not Held
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