BEIJING- Iron ore futures slid on Friday, as investors adopted a cautious stance amid continuously falling demand and ahead of top consumer China unveiling its keenly-watched fiscal stimulus package.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.65 percent lower at 776 yuan ($108.45) a metric ton.
The benchmark December iron ore <SZZFZ4> on the Singapore Exchange slipped 2.16 percent to $103.25 a ton, as of 0738 GMT.
With uncertainty on the US presidential election dissipating, the market is awaiting details of China’s fiscal spending, said analysts.
Some market watchers expect most funds will go in easing local government debt burdens and won’t offer much of a boost to near-term economic growth.
“We expect the impact from the macroeconomic factor to gradually recede and prices in the ferrous market will reflect more influence from fundamentals,” analysts at Sinosteel Futures said. Demand for the key steelmaking ingredient contracted further and persistently high imports led to continued pick-up in portside stocks, weighing on prices.