By Enrico Dela Cruz
Chinese iron ore futures edged higher on Thursday on supply concerns as coronavirus containment measures across the world intensified, but clouded demand outlook for the steelmaking raw material and steel products capped gains.
The most-traded May iron ore contract on the Dalian Commodity Exchange ended the morning session up 0.2% at 658.50 yuan ($92.67) a tonne. The front-month April contract on the Singapore Exchange, however, fell as much as 1.9%.
Supply concerns also supported spot prices. The benchmark 62% iron ore bound for China, the biggest buyer of the raw material and which accounts for more than half of the world’s steel output, was well above $80 a tonne.
“Prices (are) trading above US$80/T level, comfortably supported by expectations of a potential supply deficit in 2020 as many major producing countries announce complete lockdowns,” commodity strategists at ING wrote in a note…Full Story