Dalian and Singapore iron ore futures fell on Friday after data showed China’s property sector contracted further in August, with a seasonal demand boost usually seen beginning September not yet in sight.
Property investment last month in the world’s top steel producer fell at the fastest pace since December 2021, according to Reuters calculations based on official data. New home prices fell 1.3 percent year-on-year, the fastest pace since August 2015.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended daytime trade 1.2 percent lower at 715 yuan ($101.89) a ton.
On the Singapore Exchange, the steelmaking ingredient’s benchmark October iron ore slumped 2.6 percent to $98.05 a ton, trading below $100 for the first time this week.
Friday’s data sapped market confidence that had propped up China’s ferrous complex in recent days, underpinned by the government’s intensified support for the ailing property sector and hopes of additional policy action to shore up the economy.
Policymakers have announced over 50 economic support measures since late May and last week stressed that this quarter was a critical time for policy move.
