Iron ore futures dipped on Thursday, with the Dalian benchmark retreating after a three-day advance spurred by China’s pledge to step up support for the struggling property sector, as traders awaited further policy actions.
Prospects of increased supply of the steelmaking ingredient also weighed on prices, with miner Fortescue flagging higher shipments for the 2024 fiscal year, adding to increasing deliveries by peers Rio Tinto and BHP Group
The most-traded September iron ore on China’s Dalian Commodity Exchange ended morning trading 1 percent lower at 856 yuan ($120.06) per metric ton.
On the Singapore Exchange, the most-active September iron ore contract was down 1 percent at $112.10 per metric ton.
“The market is now awaiting more actions and follow-through,” Nomura analysts said in a note, after China’s top leaders this week signaled more stimulus steps to rejuvenate the world’s second-largest economy and top steel producer.
“The sustainability of this renewed hope crucially depends on details of any stimulus package — which so far is still lacking,” the analysts said.
Rio, the world’s biggest iron ore producer, was cautiously optimistic on China’s economy over the rest of the year, CEO Jacob Stausholm said on Wednesday.
