SINGAPORE- Iron ore futures dipped on Wednesday, as investors weighed up a weaker global steel market outlook and softer forecasts for China’s economic recovery against the top consumer’s latest raft of stimulus measures.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.2 percent lower at 759.0 yuan ($106.46) a metric ton.
The benchmark November iron ore on the Singapore Exchange was 0.06 percent lower at $100.55 a ton.
Global crude steel production in September fell 4.7 percent from a year earlier to 143.6 million tons, with China’s output declining 6.1 percent to 77.1 million tons, World Steel Association data showed on Tuesday.
“We are making significant downward revisions to our 2024 steel demand outlook for most major economies, reflecting the persistent weakness in manufacturing alongside lingering global economic headwinds,” the association said in a separate note.
It expects China will account for less than half of global steel consumption in 2024 amid the ongoing downturn in its property sector.
Meanwhile, Beijing’s latest stimulus measures will not meaningfully boost domestic demand, leaving a major source of trade friction intact, US Treasury Secretary Janet Yellen and International Monetary Fund chief economist Pierre-Olivier Gourinchas said on Tuesday.
