BEIJING- Iron ore futures slumped on Monday, as a series of property data from top consumer China heightened concerns over the uncertain demand outlook, already clouded by the global trade war.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.27 percent lower at 777.5 yuan ($107.39) a metric ton.
The benchmark April iron ore on the Singapore Exchange was down 1.76 percent at $102.15 a ton.
China’s new home prices fell in February, despite a raft of government’s stimulus measures and promises of more. While new construction starts measured by floor area, which is often monitored as an indicator for steel demand, decreased 29.6 percent, following a 23.0 percent slide in 2024.
Growing uncertainty over the potential for increased hot metal output, a key indicator of iron ore demand, is also weighing on the prices of the essential steelmaking ingredient.
Production of hot metal will pick up mildly this month, leading to a pile-up in portside inventories in coming weeks, analysts at Jinrui Futures said in a note.
Chinese steelmakers have exercised more ‘self-discipline’ in production so far this year even when profits are relatively appealing, said a steelmaker and a trader, both requesting anonymity as they are not authorized to speak to media.
