SINGAPORE- Iron ore futures declined to their lowest level in nearly two months on Friday and fell for the week, weighed down by weakness in China’s property sector, stronger supply, and prospects of reduced seasonal steel demand.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 3.09 percent lower at 736.0 yuan ($101.80) a metric ton, its lowest since Sept. 27. It tumbled 6.18 percent this week.
The benchmark December iron ore on the Singapore Exchange was 1.7 percent lower at $96.6 a ton, as of 0850 GMT, falling 4.18 percent for the week.
China’s new home prices in October fell the most year-on-year since 2015, while property investment declined 10.3 percent in the first 10 months of 2024, official data showed on Friday, suggesting Beijing’s support measures for the sector have had little impact so far. Additionally, an “aggressive” 2.17 million ton increase in Australian iron ore shipments and 2.31 million ton rise in Chinese iron ore arrivals in the week ending Nov. 10 should undermine futures and prices, said Atilla Widnell, managing director at Navigate Commodities.
