SINGAPORE- Dalian iron ore futures prices slid to their lowest in over two weeks on Monday as China’s latest stimulus package underwhelmed investors across markets, while softer economic data and firmer supply in the top consumer added pressure on prices.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 3 percent lower at 761.0 yuan ($105.95) a metric ton.
The contract had earlier tumbled by as much as 3.5 percent to 756.0 yuan, its weakest since Oct. 25.
The benchmark December iron ore on the Singapore Exchange was 1.67 percent lower at $100.85 a ton.
China unveiled a 10 trillion yuan ($1.40 trillion) debt package on Friday to ease local government financing strains and stabilize flagging economic growth, as it faces fresh pressure from the re-election of Donald Trump as US president.
The package disappointed investors hoping China would announce extra fiscal buffers to pre-empt another round of fractious Sino-US tensions and trade barriers. “The debt swap will not translate directly into growth,” said ANZ analysts.
