SINGAPORE- Dalian iron ore futures inched lower on Wednesday, as data showing a contraction in factory activity in top steel producer China weighed on sentiment.
The most-traded January iron ore on China’s Dalian Commodity Exchange fell 0.1 percent to 770.5 yuan ($107.79) a ton.
On the Singapore Exchange, the benchmark December iron ore was up 0.3 percent at $101.05 a ton.
China’s factory activity contracted at a faster pace in November, an official survey showed, weighed down by COVID-19 curbs and softening global demand, underscoring the increasing pressure faced by the world’s second-largest economy.
The country reported 37,828 new COVID-19 infections on Nov. 29, of which 4,288 were symptomatic and 33,540 were asymptomatic, the National Health Commission said on Wednesday.
Market sentiment remains slightly buoyed by recent measures by the Chinese government to support the country’s beleaguered real estate sector, ANZ said in a research note.
Further, following protests over the weekend, China’s National Health Commission said excessive COVID-19 curbs should be avoided, even as the virus spreads, the note added.
Asian shares wobbled as investors remain cautious about China’s path to reopening its economy after it released disappointing manufacturing data.
