SINGAPORE- Iron ore futures prices slid on Tuesday to their lowest levels in more than three months as a lack of stimulus from China’s third plenum raised the prospect of bleak demand from the top consumer.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 2.06 percent lower at 785.5 yuan ($107.99) a metric ton, its lowest since April 8.
The benchmark August iron ore on the Singapore Exchange fell 1.67 percent to $101.75 a ton, also its lowest level since April 8.
Iron ore’s persistent losses come amid a “dour outlook” for demand in China, ANZ analysts said in a note.
China’s shaky economic recovery continues to be plagued by weak domestic demand, persistent deflationary pressures and an anaemic property sector, even in the face of stimulus measures, which analysts have deemed insufficient.
The lack of any further support measures for China’s property sector has seen sentiment weaken, added the ANZ analysts.
China surprised markets by cutting major short- and long-term interest rates on Monday, its first such broad move since last August, signaling intent to boost growth in the world’s second-largest economy just days after a Communist Party leadership meeting.