Miners follow iron ore prices lower on China supply and demand concerns
Mar. 09, 2021 10:38 AM ETRio Tinto Group (RIO)By: Carl Surran, SA News Editor
Global metals and mining stocks open with sharp losses as copper and iron ore prices fall while other commodities including precious metals rise: RIO -2.4%, BHP -2.1%, VALE -2.4%.
Copper producers also trade lower: FCX -3.6%, TECK -2%, SCCO -0.6%, TRQ -0.7%, OTCPK:FQVLF -3.3%.
Steelmakers are mixed: X -4.7%, NUE -1.5%, STLD -2.2%, CLF +0.7%, MT +0.2%.
Other relevant tickers include OTCQX:AAUKF, OTCQX:NGLOY, OTCPK:GLCNF, OTCPK:GLNCY, OTC:ANFGF
Iron ore futures in Singapore fell 5.8% to hit a three-week low amid concerns that demand in top consumer China is cooling after the country's Tangshan steelmaking hub imposed more production restrictions to combat pollution.
Tangshan's target to cut steel emissions this year has the potential to return the iron ore market to surplus, Morgan Stanley analysts say.
China's iron ore consumption could come in 34M-61M tons lower than the firm's estimate, which could turn a forecast 2021 seaborne deficit of 40M tons into a balanced or over-supplied market.
Capital Economics commodities analyst Caroline Bain says China's January-February trade data show a clear deceleration in the growth of commodity imports, and she expects the trend to continue during this year as policy support is gradually withdrawn.
Bron Seeking Alpha