BEIJING — Iron ore futures prices traded little changed on Friday but were set for weekly losses, as expectations of more stimulus from top consumer China for the struggling property sector faded, dimming demand prospects for the steelmaking ingredient.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 0.19 percent lower at 783 yuan ($108.60) a metric ton, posting a weekly fall of 2.1 percent.
The benchmark September iron ore on the Singapore Exchange climbed 0.49 percent to $100.25 a ton by 0700 GMT. It has slipped 2.9 percent so far this week.
China’s July Politburo meeting that sets the economic course for the remainder of the year did not unleash stimulus for the embattled property sector, which remains a headwind for the consumption of industrial materials such as steel.
“The meeting set a positive tone for the current economic situation, which reduced the urgency of rolling out more stimulus policies,” said Zhuo Guiqiu, an analyst at broker Jinrui Futures.
Demand concerns also emerged after China’s purchasing managers’ index (PMI) fell to the lowest since April last month.
It was at 49.3 in July, missing a median forecast of 49.7 in a Reuters poll and down from 49.7 in June, underscoring weakening demand at home and abroad.
Weighing on prices of the key steelmaking ingredient was also falling demand, Jinrui Futures’ Zhuo said.
Average daily hot metal output slid by 0.6 percent from the prior week to 2.41 million tons in the week, as of July 31, hitting the lowest level in three weeks, data from consultancy Mysteel showed.
Hot metal output is typically used to gauge iron ore demand.
Other steelmaking ingredients on the DCE languished, with coking coal and coke down 8.88 percent and 3 percent, respectively.
Most steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar lost 1.2 percent, hot-rolled coil and wire rod fell 0.6 percent, while stainless steel was little change Reuters.
