Iron ore futures in Singapore were steady
Thursday amid heightened concern over supply of the steelmaking
raw material and the flagging of new import rules by China.
Prices could test $120/ton as global supply is failing to
keep pace with resilient consumption, according to Morgans
Financial Ltd. Brazil iron ore shipments had their slowest start
to a year in the last five years amid the Covid-19 pandemic, the
broker said.
Investors will also be closely watching relations between
China and Australia, the world’s largest iron ore exporter,
after China’s customs administration said it would simplify iron
ore import inspections from June 1 to facilitate trade.
Australia & New Zealand Banking Group Ltd. said a recent
rally in prices looks “increasingly stretched”, with
strengthening headwinds in the steel industry likely to put
downward pressure on prices in the coming months.
(Bloomberg)