Hot steel on conveyor in steel mill. Stock image.
The iron ore price dipped on Wednesday amid limited trading activity due to the absence of Chinese market participants.
“With Chinese participants absent on May 1-4 for the Labor Day holiday, trading activity has been very limited so far this week, further depressing demand,” Fastmarkets said in a note.
Benchmark 62% Fe fines imported into Northern China fell 1.76%, to $143.42 per tonne.
Moody’s Investors Service said the persistence of weaker mining production and volume constraints will exacerbate tight markets and elevate the prices of many metals in 2022.
Covid-19 infections among workers have created labour challenges in key mining countries, including Australia and South Africa.
Furthermore, weather-related disruptions, including heavy rainfall in Brazil, are impacting companies’ output.
Anglo American reported a 10% year-on-year decrease in first-quarter production and lowered its full-year platinum group metals, iron ore and metallurgical coal production guidance for the year.
Rio Tinto’s Pilbara iron-ore segment reported a 6% year-on-year decline in production and an 8% decline in shipments in the first quarter.
Vale maintained its iron-ore production guidance for this year at between 320-million and 335-million tonnes, despite the challenges faced in the first quarter when heavy rainfall temporarily halted production at the Southern and South-eastern systems and led to stoppages of railway transportation in the Northern system.