SINGAPORE- Dalian iron ore futures closed lower, weighed down by dismal demand outlook in top steel producer China, although prices posted a weekly gain on prospects of further stimulus for the economy.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange ended day-time trade down 1.4 percent at 736.0 yuan ($106.48) a ton. The contract logged gains of more than 5 percent for the week.
On the Singapore Exchange, the benchmark June iron ore contract was 1.1 percent lower at $105.65 a ton. The contract has posted a more than 7 percent rise for the week so far.
“China’s property indicators are not showing a sustainable recovery,” ANZ said in a note.
“Property sales and completed projects have picked up, but new starts are contracting.
Various supportive measures have failed to stimulate real estate investment.”
China’s new home prices rose for the fourth straight month in April but at a slower pace, heightening fears that pent-up demand after the country’s economic reopening is fading.
China’s April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter and intensifying pressure on policymakers to shore up a wobbly post-COVID recovery. – Reuters
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