Iron ore price falls on China covid woes, recession fears

Mining
Wednesday, July 6th, 2022 9:03 am EDT

“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)

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