Iron ore futures decline

The November iron ore contract on the Singapore Exchange fell 3.6% to $78.80 a tonne, the lowest level since September 2020.

On China's Dalian Commodity Exchange, the January contract closed 4.2 percent lower in the morning session at 629 yuan ($86.94) a tonne, after touching its weakest level since Jan. July 22 at 622.50 yuan/ton.

Both Dalian and Singapore benchmark prices are on track for sharp weekly and monthly declines amid growing concerns about weakening global steel demand and top steel producer China's economy, which has been hit affected by Covid-19 restrictions and the downturn of the real estate sector.

The International Monetary Fund said on Friday that it does not expect a quick resolution to the country's asset unrest. It also slashed Asia's economic growth forecasts due to a sharp slowdown in China, a tightening of the global currency and rising inflation.

Industry group Eurofer said that steel demand in the European Union is expected to fall 3.5% this year and 1.9% in 2023 due to soaring energy prices and an looming economic downturn.

Steel