SINGAPORE: Iron ore futures declined on Friday, weighed down by concerns about China’s property market and weaker-than-expected steel production.
The most-traded January iron ore on China’s Dalian Commodity Exchange fell 1.5% to 854 yuan ($116.72) per metric ton, as of 0300 GMT. The contract has gained 1.9% so far in the week, heading for its first weekly rise after three consecutive weeks of declines.
On the Singapore Exchange, the benchmark November iron ore was down 2% at $114.55 a metric ton.
The contract has gained 2.3% so far in the week, heading for its first weekly rise in five. Data released on Wednesday showed that China’s economy grew at a faster-than-expected clip in the third quarter, displaying strength in consumption and industrial activity in September, suggesting the recent flurry of policy measures is bolstering a tentative recovery.
“Base metal prices saw some initial strength (on Wednesday) following GDP data from China which beat market estimates. However, there are still concerns over the property sector,” ING said in a report published on Thursday. New home prices fell for the third straight month in September, dashing hopes of a turnaround in demand during a traditionally peak month for home buying.
“Home prices in major Chinese cities fell at a faster pace in September, signalling ongoing weak demand,” ANZ bank analysts said in a note.
Source: Brecorder
