The price of iron ore falls due to limited trading

The price of iron ore fell on Wednesday amid limited trading activity due to the absence of Chinese market participants.

“Because Chinese participants were absent from May 1-4 for the Labor Day holiday, trading activity was very limited this week, further dampening demand,” Fastmarkets said in a statement.

Control 62% Fe fines imported into Northern China fell 1.76% to $143.42/t.

Moody's Investors Service said continued weaker mining production and volume restrictions would exacerbate market tensions and drive up prices for many metals in 2022.

Covid-19 infections among workers have created labor challenges in key mining countries, including Australia and South Africa.

In addition, the performance of companies is affected by weather-related disruptions, including heavy rains in Brazil.

Anglo American reported a 10% year-on-year decline in first-quarter production and lowered its full-year forecast for platinum group metals, iron ore and metallurgical coal production for the year.

Rio Tinto's Pilbara iron ore segment reported a 6% year-on-year decline in production and an 8% drop in shipments in the first quarter.

Vale maintained its iron ore production forecast for this year at 320 to 335 million tons, despite problems encountered in the first quarter, when heavy rains temporarily halted production in the southern and southeastern systems and forced the railroad to shut down. transport in the northern system.