Coronavirus Threatens Manufacturing, Commodity Markets

The outbreak of the new coronavirus could possibly slow manufacturing activity, according to Takakazu Uchida, Chief Financial Officer at Mitsui & Co.

Meanwhile, falling commodities prices, including iron ore, could reflect on the sector, Uchida said during a press event on Tuesday, as quoted by Reuters.

Coronavirus threatens manufacturing, commodity markets https://t.co/39UgyQCDV5 pic.twitter.com/9J6GugEK7A

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Investors are moving away from risk in commodity markets, making it inevitable to see some impact on our earnings, he further noted, as a decline in iron ore prices by $1 a tonne translates to a decrease in the group’s net profit by more than $19 million.

The virus which is believed to have originated in the Chinese city of Wuhan has infected more than 20,000 people, leading to more than 420 deaths.

Source: Mubasher

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