An upturn in iron ore prices on the back of promises from Chinese President Xi Jinping to take more effective measures to achieve the country’s economic and social development goals has proven to be just a blip. When Xi made his comments on June 23, iron ore prices bounced off a seven-month low of $109 per tonne on June 22. But rather than marking the start of a sustained recovery, the tide soon turned and by June 27 prices had fallen for three straight weeks. Analyst Wood Mackenzie’s observation in May that iron ore growth could be slower than the market is hoping for seemed to hit the nail on the head, adding that there is no “quick fix” to seaborne supply constraints which will continue to play catch up to demand this year. Steel demand is wavering – of that there is no doubt. World crude steel production for the 64 countries reporting to the World Steel Association was 169.5 million tonnes in May 2022, a 3.5% decrease compared with May 2021. Of those reporting, China produced 96.6 ...
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