Iron ore futures fell sharply on 28 January as the coronavirus outbreak raised doubts about a recovery in Chinese steel demand after the Lunar New Year holiday. February contracts on the Singapore Exchange dropped 8.8 percent, or $8.03 per tonne, to $83 per tonne. Spot prices for 62 percent iron fines were assessed at about $85 per tonne on a cost-and-freight basis, down from $93.30 on the last working day before the holiday, although trading was thin while Chinese markets were closed. The Dalian Commodity Exchange said it would reopen on 3 February instead of 31 January. Market participants expected construction and factory restarts to be delayed, leaving mills with weaker near-term appetite for raw materials. The fall reversed part of the strength seen earlier in January, when prices had held near $92 per tonne. Analysts warned that sentiment would stay bearish until the scale of the disruption to building work and industrial output became clearer.
Source: SteelOrbis — https://www.steelorbis.com/steel-prices/steel-prices-market-analyses/scrap-and-raw-materials/iron-ore-futures-price-in-singapore-down-88-coronavirus-increases-demand-concerns-1129971.htm
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