Dalian and Singapore iron ore futures fell on Monday amid a flurry of disappointing economic indicators and heatwaves in China, while a surprise interest rate cut by the country’s central bank tempered traders’ pessimism.
The most-traded iron ore contract, for delivery in January next year, on China’s Dalian Commodity Exchange ended morning trade 1.8 percent lower at 715.50 yuan ($105.86) a ton.
On the Singapore Exchange, the steelmaking ingredient’s front-month September contract shed 1.9 percent to $108.30 a ton.
Top steel producer China’s economy unexpectedly slowed in July, with industrial output to retail sales missing forecasts by large margins, pointing to a shaky recovery as Beijing shows no sign of easing its zero-COVID policy.
The gloomy data also reflected the impact of a crisis engulfing China’s property developers, with crude steel output in July 6.4 percent lower compared with a year earlier, and property investment in January-July falling at the fastest pace since March 2020.
New home prices in July were also uninspiring.
Also pointing to a fragile economic recovery, data on Friday showed new bank lending in China tumbled more than expected in July, while broad credit growth slowed.
And the chances of a rebound in activity this month appeared slim with the extreme heat being felt in several regions. – Reuters