On continued concerns about demand in China, where fresh COVID-19 signals threaten to derail the economy's recovery and steel margins have come under pressure, iron ore prices dipped on Friday, with the Singapore benchmark heading for a weekly loss.
On China's Dalian Commodity Exchange, the most-traded September iron ore contract closed daytime trading 1.7 percent down at 914.50 yuan (USD 136.7) a ton.
On the Singapore Exchange, the most active July contract for the steelmaking component fell 1.9 percent to USD 139 per ton, a weekly decrease of 2.6 percent.
Shanghai city is once again fighting the viral return, with numerous places under lockdown, a week after lifting virus-related restrictions.
As COVID-19 instances continue to surface, Shanghai will close down eight major districts this weekend to conduct mass testing of millions of individuals.
Lockdowns in China, which has a strict zero-COVID policy, have wreaked havoc on the world's second-largest economy and the world's largest steel production.
"China remains a significant source of global growth concern," J.P.Morgan analysts said in a note. While the reopening of China's economy resulted in a boom in exports in May, it "also boosts the likelihood that instances resurface."
Spot iron ore in China, on the other hand, has been rising this week, reaching a seven-week high of USD 148 per ton on Thursday.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only