BEIJING- Iron ore futures prices extended their declines to a fourth straight session on Thursday, hitting their lowest level in more than 14 months, as persistently weak property data in top consumer China exacerbated pessimism over the demand outlook.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 2.85 percent lower at 698 yuan ($97.52) a metric ton, a low since May 31, 2023. The contract is down 8.4 percent so far this month.
The benchmark September iron ore on the Singapore Exchange slid 2.7 percent to $93.6 a ton, the lowest since November 2022.
Property investment in China fell 10.2 percent in the first seven months from a year earlier, after dropping 10.1 percent in January-June. New construction starts measured by floor area fell 23.2 percent on year, after a 23.7 percent drop in the first half of the year, official data showed.
The property market remains China’s largest steel consumer despite the sector’s falling share amid the protracted crisis since 2021.
“We think ore prices will have further downside room in terms of valuation given that it has already broken through a key support level of $100 a ton,” analysts at Shengda Futures said in a note.
Steel benchmarks on the Shanghai Futures Exchange posted further losses with sharp price falls souring sentiment, analysts said.
