MANILA, March 30 (Reuters) – Iron ore futures in China and Singapore fell on Monday on renewed doubts whether the massive stimulus measures introduced across the world are adequate to buttress a global economy hammered by the coronavirus pandemic.
Worries about demand for metals also hit steel futures in China, which accounts for more than half of the world’s steel output and the top exporter of steel products.
The Dalian Commodity Exchange’s most-active May contract for steelmaking ingredient, iron ore, dropped as much as 3% to 640.50 yuan ($90.26) a tonne, before ending the morning session down 2.8%. Iron ore’s front-month April contract on the Singapore Exchange shed as much as 2.3%.
The United States’ $2 trillion economic relief package and the huge stimulus plans rolled out elsewhere have failed to ease worries about a severe economic damage due to the prolonged and intensified virus-containment measures.
“With the world going into quarantine, commodity prices have tanked, with risk assets also likely vulnerable this week as the virus continues to spread,” ING economists Prakash Sakpal and Nicholas Mapa wrote in a note.