“As we have repeatedly said, tighter covid measures could return to China. And there are more positive covid tests once more in Shanghai,” ING economists said in a note.
Benchmark 62% Fe fines imported into Northern China fell 1.27%, to $111.54 per tonne.
“China’s sluggish economic growth and particularly weak steel production suggest that the iron ore price could slide towards $100 per tonne,” senior economist at MLC Asset Management Bob Cunneen told Financial Review in an interview.
Goldman Sachs reduced its three-month price target for the bulk commodity to $90 per tonne, from $110 a tonne.
The bank expects the metal price to average $100 per tonne in Q2 2022.
(With files from Reuters)