Dalian iron ore futures prices slid on Wednesday, weighed down by subdued sentiment due toa persistently weak steel market and lack of big-ticket stimulus in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.74 percent lower at 877 yuan ($121.82) a metric ton.
“Traders have shifted their focus back to reality after the important meeting and iron ore prices may feel further pressure from the weak steel market,” analysts at Sinosteel Futures said in a note.
Policymakers in the world’s second-largest economy on Tuesday set key economic targets for the year during the keenly watched annual parliament meeting – the National People’s Congress (NPC).
The main figures were largely in line with market expectations, disappointing those who had been looking for bigger stimulus that will benefit metals consumption.
“The statement around property policy is not new,” analysts at Goldman Sachs said in a note.
“We estimate infrastructure-related on-budget fiscal expenditure may slow to +3.8 percent yoy in 2024 from +5.1 percent yoy in 2023, mainly weighed on by slower spending growth on energy saving & environmental protection related projects,” they added in a separate note. – Reuters