Analysis
Iron Ore’s Big China Property Problem Just Isn’t Going Away
- Citigroup says ‘degree of weakness’ in real estate is in focus
- Prices have staged a tentative recovery since April plunge
Residential buildings under construction in Jinan, China, on May 9.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Iron ore’s recent mini-recovery can’t mask the fact that China’s push for a less property-intensive economy will keep demand subdued for years to come.
Pockets of strength in the Chinese steel market have boosted the raw material after a plunge below $100 a ton in early April. Surging steel exports, signs of life in factory activity, and hopes for more policy support from President Xi Jinping’s government have all helped.