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Dalian iron ore posts steepest drop in almost two years

Dalian iron ore futures logged their sharpest day-to-day drop in practically 2 years on Tuesday, as bleak financial data from leading customer China clouded the demand outlook, while firm worldwide supply also weighed on costs.

The most-traded January iron ore agreement on China's Dalian Product Exchange (DCE) ended daytime trade 4.74%. lower at 703.5 yuan ($ 98.87) a metric lot, posting its steepest. decrease because Oct. 31, 2022.

The contract fell as much to 700.0 yuan earlier in the. session, its least expensive level given that Aug. 19.

The benchmark October iron ore on the Singapore. Exchange was 2.75% lower at $94.15 a ton, since 0711 GMT.

Iron ore futures fell following further evidence of weak. Chinese demand, as the continuous contraction in factory activity. was joined by a deepening slump in the residential or commercial property sector, ANZ. experts stated in a note.

China's production activity sank to a six-month low in. August, an official study showed, pressuring policymakers to. press on with strategies to direct more stimulus to families.

On the other hand, the nation's brand-new home prices increased at a slower. pace in August, as its crisis-hit home sector has a hard time to. find its bottom after a batch of supportive policies.

The total volume of iron ore shipments dispatched to international. destinations from 19 ports and 16 mining business in Australia. and Brazil leapt 10.9% week-on-week to reach 29 million heaps. during Aug. 26-Sept. 1, Chinese consultancy Mysteel said.

The spike was due to a surge in shipping volumes of. Brazilian iron ore, which leapt 39% from the previous week to. mark its greatest weekly delivery because 2019, Mysteel added.

Other steelmaking ingredients on the DCE extended losses,. with coking coal and coke down 2.41% and. 2.24%, respectively.

Most steel criteria on the Shanghai Futures Exchange were. weaker. Rebar slid 3.14%, hot-rolled coil. dropped nearly 3.0%, stainless-steel lost almost 1.0%,. while wire rod was flat.

(source: Reuters)