China’s better-than-expected GDP results in June are unlikely to ease concerns about the country’s slowing development. Iron ore prices may be put under even more downward pressure as a result of this. Despite this, ANZ Bank strategists do not expect a severe drop in the near future because the market is still tight.” Steel demand in China has been high so far this year, with production volumes rising 13% year on year in January-May. However, the tide has begun to turn. In June, car sales decreased. Infrastructure investment has been declining year over year, and growth in the property industry has slowed in recent months. Steel margins in China have plummeted, resulting in June’s first monthly loss in steel production since November 2020.”
“Outside of China, demand is likely to compensate for some of the country’s difficulties. In addition, supply growth is expected to be moderate, keeping the iron market tight. In H2 2021, prices are expected to move lower, but the downside will be limited. We retain our $185/t target for the next three months.”/n
