BEIJING- Iron ore futures prices slid on Thursday as investor sentiment was dampened after state media in top consumer China emphasized qualitative improvements ahead of a long-anticipated meeting that is expected to set the tone for economic growth next year.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.68 percent lower at 804.5 yuan ($110.64) a metric ton.
The benchmark January iron ore on the Singapore Exchange slipped 1.03 percent to $104.25 a ton.
China is not wedded to achieving specific GDP growth rates, and a pace of less than 5 percent for the economy is acceptable as there is no need for the “worship of speed”, state newspaper People’s Daily said on Wednesday.
China’s Central Economic Work Conference will meet this month, at a yet-to-be-announced date, and top leaders will set economic growth targets and plan next year’s agenda.
Investors and traders had been expecting Beijing to roll out more stimulus, said analysts. “We think iron ore is currently overvalued. Therefore, a downward correction is unavoidable,” said Cheng Peng, an analyst at Sinosteel Futures.
