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.

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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