SINGAPORE- Dalian iron ore futures dipped, but Singapore iron ore futures recovered as traders weighed hopes of more substantial aid for the property sector in China against fears of slowing steel output.
The most-traded January iron ore on China’s Dalian Commodity Exchange fell 0.1 percent to 730.5 yuan ($101.76) per metric ton.
On the Singapore Exchange, the benchmark September iron ore was up 1.4 percent at $102.1 a metric ton, snapping a three-day losing streak.
China’s central bank has been in discussion with local property developers for ways to better support the sector financially and the market has bought into this with a recovery rally, said Atilla Widnell, managing director at Navigate Commodities in Singapore.
China’s Zhengzhou city has launched measures to support its property market, including easing home resale restrictions, in what analysts said were the first such moves by a big city heeding signals from policymakers.
China’s central bank governor pledged on Thursday to guide more financial resources towards the private economy, the latest in a series of policy measures in recent weeks to support the economy as its post-pandemic recovery falters.
However, Navigate’s Widnell said the brokerage was not hopeful that funds would actually be diverted to steel-intensive property construction and infrastructure projects, since companies have “acted rather opportunistic” this year for fear of becoming the next Evergrande.
