Iron ore futures fell as traders worried about a dim demand outlook in top steel producer and metals consumer China assessed the prospects of additional stimulus for the world’s second-biggest economy.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trading 2 percent lower at 697 yuan ($100.84) a ton, off a session low of 685.50 yuan, its weakest since May 5.
Dalian iron ore’s benchmark price, however, was on track for a modest weekly gain after clawing back some lost ground.
On the Singapore Exchange, the steelmaking ingredient’s benchmark June contract was up 0.3 percent at $98.85 a ton, after earlier hitting $96.90, its lowest since May 5.
SGX iron ore has slumped more than 20 percent since hitting this year’s peak at about $131 a ton in mid-March, as the euphoria over China’s lifting of COVID-19 restrictions and policy support for the struggling property sector had abated.
The current macroeconomic backdrop has turned out uninspiring.
Data on Thursday showed new Chinese bank loans tumbled far more sharply than expected in April, among a slew of downbeat indicators spurring concerns that the economy’s recovery is losing steam and putting pressure on policymakers to roll out additional supportive measures. -Reuters
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