BEIJING: Iron ore futures slipped on Monday, as sagging demand in top consumer China, along with increasing equipment maintenance and the lack of new stimulus measures from the country’s top decision-making body, weighed on sentiment.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 1.14 percent lower at 778.5 yuan (USD110.13) a metric ton, its lowest since November 17.
The benchmark January iron ore on the Singapore Exchange declined 1.34 percent to USD102 a ton as of 0718 GMT, its lowest since December 1.
Several steelmakers have implemented equipment maintenance as steel demand seasonally weakens around this time, resulting in a drop in steelmaking feedstock demand, analysts said.
The average daily hot metal output, a gauge of iron ore demand, slid 1 percent from last week to 2.32 million tons, the lowest since September 5, data from consultancy Mysteel showed.
Prices of the key steelmaking ingredient deepened in the afternoon trading as hopes of more stimulus were dashed.
China will keep expanding domestic demand and support the broader economy with more proactive policies in 2026, the Politburo, a top decision-making body of the ruling Communist Party, was cited as saying on Monday by state media Xinhua.
The anticipated meeting, however, did not unveil new forceful stimulus policies, said analysts.
The country’s iron ore imports in November remained above 100 million tons for a sixth month, despite a slight monthly fall.
The downside might be limited as lower prices will spur a wave of restocking among steel mills, analysts at First Futures said.
Coking coal and coke, other steelmaking ingredients, sank 6.14 percent and 5.79 percent, respectively.
“The anticipation that coal imports from Mongolia will jump dragged down prices,” Zhuo Guiqiu, an analyst at broker Jinrui Futures, said, adding that the weakness in coal market also pressured iron ore.
Most steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar lost 1.3 percent, wire rod shed 1.47 percent, hot-rolled coil fell 1.02 percent, while stainless steel added 0.16 percent.