MANILA: Dalian iron ore futures edged higher on Wednesday, on track for a fifth straight session of gains, as an unexpected policy rate cut by China’s central bank this week offered relief to traders disheartened by the country’s faltering economic rebound.

Iron ore prices in Singapore, however, dipped as China’s new home prices fell for the first time this year in July, adding to a cautious trading mood following a string of downbeat data that points to a loss in economic momentum for the world’s top steel producer and metals consumer.

The most-traded January iron ore on China’s Dalian Commodity Exchange was up 0.5% higher at 736 yuan ($100.86) per metric ton, as of 0532 GMT. On the Singapore Exchange, the steelmaking ingredient’s benchmark September contract was down 0.5% at $100.50 per metric ton. “The ongoing weakness in the property sector remains a headwind for the steel and iron ore market.

Nevertheless, PBOC’s cut to rates on one-year loans by 15bp to 2.5% raised some hope of stabilisation in the property market,” ANZ commodity strategists said in a note.

China’s uninspiring new home prices data mirrored the embattled property sector’s weakness that analysts expect to persist and drag down economic growth, piling pressure on Beijing to provide more bolder policy support to prop up activity.

China’s gradual policy implementation of another year of crude steel production control may also curb prices of iron ore and other steelmaking ingredients.

More and more Chinese steel producers are planning to reduce output in the near term, according to industry data and consultancy provider Mysteel. Coking coal and coke on the Dalian exchange fell 1.1% and 0.5%, respectively.