Iron ore heads for weekly loss as hopes fade for China stimulus

BEIJING: Iron ore futures prices traded little changed on Friday but were set for weekly losses, as expectations of more stimulus from top consumer China for the struggling property sector faded, dimming demand prospects for the steelmaking ingredient.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 0.19% lower at 783 yuan ($108.60) a metric ton, posting a weekly fall of 2.1%.

The benchmark September iron ore on the Singapore Exchange climbed 0.49% to $100.25 a ton by 0700 GMT. It has slipped 2.9% so far this week. China’s July Politburo meeting that sets the economic course for the remainder of the year did not unleash stimulus for the embattled property sector, which remains a headwind for the consumption of industrial materials such as steel.

“The meeting set a positive tone for the current economic situation, which reduced the urgency of rolling out more stimulus policies,” said Zhuo Guiqiu, an analyst at broker Jinrui Futures.

Demand concerns also emerged after China’s purchasing managers’ index (PMI) fell to the lowest since April last month.