The iron ore price fell on Monday, tracking lower raw material prices as still stringent covid-19 related measures in China dented market sentiment and fuelled worries that the recovery in the world鈥檚 second-largest economy might lose steam.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $150.65 a tonne during morning trading, down 2.23% compared to Friday鈥檚 closing.
鈥淧revious market expectation was that the (steel) demand would be postponed but not absent,鈥� analysts with GF Futures wrote in a note.
鈥淏ut as the current pandemic is continuously spilling over, there鈥檚 a relatively big uncertainty in its disruptions to the economy,鈥� said the note, adding that the consumption in April and May could be pressured.
China鈥檚 financial hub, Shanghai, which had started lockdown at the end of March, has reported around 180,000 locally transmitted infections between March 1 and April 9, of which 96% were asymptomatic.
鈥淐hina鈥檚 covid outbreaks, associated lockdowns, and the government鈥檚 handling of them will likely continue to dominate sentiment and direction for iron ore futures in the near term,鈥� said Atilla Widnell, managing director at Navigate聽Commodities聽in Singapore.
Related: CATL isolates workers to avoid covid shutdown
(With files from Reuters)