Iron ore futures in Singapore recovered from yesterday’s blip and is set to finish the week on a high.
The iron ore market has seen great volatility of late, pushing towards $100 on supply concerns following disruptions in Brazil as well as strong demand from China.
Global steel demand is expected to fall 6.4% this year due to the COVID-19 pandemic’s impact on industrial and construction activity, but bounce back next year, the World Steel Association said on Thursday.
“We feel iron ore’s recent rally looks increasingly stretched, with strengthening headwinds in the steel industry likely to put downward pressure on prices in the coming months,” said Daniel Hynes, a senior commodity strategist at ANZ.
Trading was light on Friday. Iron ore futures in Singapore recovered to Wednesday’s levels, with Jul and Aug trading as high as 97.45 and 94.45, respectively during London morning. Jul/Aug also traded 2.65 and 2.7. The onshore Dalian Exchange was little changed at 746 RMB, just up by 0.5 RMB from yesterday’s close. (FIS)