BEIJING: Dalian iron ore futures prices fell on Monday to their lowest in seven weeks, as a batch of downbeat data in top consumer China drove concerns over demand prospects for the key steelmaking ingredient.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) closed morning trade 0.19% lower at 770 yuan ($108.08) a metric ton.
It touched the lowest since September 1 at 762.50 yuan earlier in the session.
The benchmark November iron ore on the Singapore Exchange was, however, 0.41% higher at $104.35 a ton, as of 0354 GMT, supported by a softer US currency which makes dollar-priced commodities cheaper for buyers using other currencies.
The Singapore benchmark hit its lowest since October 9 at $103.25 earlier. China’s economic growth likely slowed to a one-year low in the third quarter as a prolonged property downturn and trade tensions weigh on demand.
Some key indicators including property investment and new construction starts among others in the property market pointed to a gloomy steel demand outlook, dragging ore prices down.
Also, new home prices in China fell at the fastest pace in 11 months in September, worsening the property sector’s drag on broader economic growth.
Sluggish home demand saw China’s crude steel output in September slide to a 21-month low with protracted property market woes a persistent drag.
Steel demand typically slows in the fourth quarter when low temperatures in northern regions hinder outdoor activities.
Coking coal and coke, other steelmaking ingredients, added 2.32% and 1.43%, respectively, as safety checks led to expectations of constrained supply, according to analysts. Steel benchmarks on the Shanghai Futures Exchange were largely moved in a tight range.
Rebar advanced 0.13%, hot-rolled coil and stainless steel were little changed while wire rod dipped 0.27%.
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