BEIJING- Iron ore futures prices were divergent on Wednesday, with the Dalian benchmark slightly rebounding while the Singapore benchmark fell, as investors were digesting a batch of economic data from top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.48 percent higher at 937.5 yuan ($130.29) a metric ton.
The benchmark February iron ore on the Singapore Exchange was, however, 1.94 percent lower at $126.8 a ton.
China’s economy grew 5.2 percent in the fourth quarter from a year earlier, official data showed on Wednesday, missing analysts’ expectations of 5.3 percent in a Reuters’ poll.
Meanwhile, China’s December new home prices fell at the fastest pace since February 2015, marking the sixth straight month of declines, official data showed on Wednesday, with the sector still struggling to get back on its feet due to weak confidence.
“It’s hard to see a marginal improvement in the fundamentals of ore as steel prices are weak and mills are still suffering losses,” said Cheng Peng, a Beijing-based analyst at Sinosteel Futures.
However, some analysts expect support from pre-holiday replenishment from mills.
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