MANILA: Dalian and Singapore iron ore futures fell on Friday, and were on track for weekly losses, after data showed China’s property sector contracted further in August, with a seasonal demand boost usually seen beginning September not yet in sight.
Property investment last month in the world’s top steel producer fell at the fastest pace since December 2021, according to Reuters calculations based on official data. New home prices fell 1.3% year-on-year, the fastest pace since August 2015.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 1.9% lower at 710.50 yuan ($101.38) a tonne.
It was down 0.6% this week. On the Singapore Exchange, the steelmaking ingredient’s benchmark October iron ore slumped 2% to $98.65 a tonne, trading below $100 for the first time this week. Friday’s data sapped market confidence that had propped up China’s ferrous complex in recent days, underpinned by the government’s intensified efforts to support the ailing property sector. Other steelmaking inputs also retreated, with Dalian coking coal and coke down 0.5% and 1.1%, respectively, as traders shrugged off China’s faster-than-expected growth in factory output and retail sales in August.
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