SINGAPORE: Iron ore futures fell to two-week lows on Monday as a raft of data from top consumer China highlighted persistent weakness in the property market, raising concerns about demand for the key steelmaking ingredient.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 2.82percent lower at 792 yuan (USD113.73) a metric ton, hitting its lowest point since January 6.
The benchmark February iron ore on the Singapore Exchange was 1.64percent lower at USD104.6 a ton, as of 0355 GMT, its weakest level since January 2. China’s new home prices extended their decline in December, official data showed, underscoring persistent strains in the property sector despite repeated government pledges to stabilise it.
Property investment and property sales by floor area, which are closely monitored by investors for clues on future steel and iron ore demand, also slumped.
Weighing on market sentiment were also China’s lower crude steel output and signs of growing supply. Crude steel output in 2025 fell below 1 billion tons and hit a seven-year low as the protracted property market downturn hurt demand, although steel exports rose to record levels.
Additionally, the world’s largest iron ore consumer also received its first shipment of iron ore from the Simandou mine in Guinea. Beijing has invested heavily in the mine to decrease its reliance on Brazillian and Australian shipments, which make up 80percent of its foreign supply.
Other steelmaking ingredients on the DCE also fell, with coking coal and coke down 0.89percent and 0.92percent, respectively. Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar shed 1.1percent, hot-rolled coil lost 0.81percent and wire rod fell 0.06percent, while stainless steel firmed 0.03percent.
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