Dalian iron ore futures experience decline as concerns over insufficient government stimulus and downgraded growth forecasts weigh on market sentiment.
Goldman Sachs, joining other major investment banks such as UBS, Bank of America, and JPMorgan, has revised its growth forecasts for China, the world’s second-largest economy.
The investment bank now projects a lowered GDP growth rate of 5.4pct for 2023, down from the initial 6pct, citing ongoing economic turbulence and disappointing recovery from Covid-19 lockdown measures.
The country’s property sector, a significant consumer of steel, continues to pose challenges, with a 7.2pct contraction in property investment and over a 22pct plunge in new home construction during the first five months of the year compared to the same period in 2022.
In the Dalian Commodity Exchange, the September contract for iron ore concluded daytime trading with a slight 0.12pct decrease, settling at 809.5 yuan (USD 113.5) per ton. Additionally, coke and coking coal futures saw declines of 0.81pct and 1.55pct respectively, reaching 2,148 yuan (USD 301) per ton and 1,368 yuan (USD 192) per ton.
In the Shanghai Futures Exchange, rebar futures declined by 0.74pct to 3,752 yuan (USD 526) per ton, while HRC futures dropped by 0.75pct to 3,852 yuan (USD 540) per ton. Wire rod futures also experienced a decrease of 0.61pct, reaching 4,243 yuan (USD 595) per ton, while stainless steel futures recorded a 1.35pct decrease, settling at 14,585 yuan (USD 2,046) per ton.
1 USD / 7.12 yuan
