HANOI: Iron ore futures fell to their lowest in more than two weeks, pressured by an inventory accumulation at Chinese ports and caution about demand outlook, but property support measures in China lent some support.

The most-traded September iron ore on China’s Dalian Commodity Exchange (DCE) fell as much as 1.6% to 857 yuan ($118.62) a metric ton, the lowest since April 24, earlier in the session. It declined 0.7% on a weekly basis.

The contract, however, rebounded to close 0.3% higher at 873.50 yuan. Seasonal constraints in major iron ore suppliers have eased and China’s iron ore port inventory accumulation level has topped previous years, Huatai Futures analysts said in a report.

“Affected by the recent shock and decline of iron ore futures, steel mills have low acceptance of high-priced resources and maintain rigid demand purchases,” they added.

DCE iron ore dropped 20% in the first quarter of this year, the biggest decline since the third quarter of 2021. But prices have rebounded 16% so far in the second quarter.

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