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Dalian iron ore at more than two-week low on softer China data, deteriorating steel sector

Costs of Dalian iron ore futures extended declines on Wednesday to touch their lowest in over 2 weeks, as softer Chinese data raised concerns over the top customer's financial healing and weakening steel sector.

The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) ended morning trade 1.55%. lower at 700.5 yuan ($ 98.52) a metric heap.

The contract hit an intraday low of 689.5 yuan, its weakest. level considering that Aug. 19.

The benchmark October iron ore on the Singapore. Exchange, however, was 0.19% higher at $93.8 a lot, since 0330. GMT.

Development in China's services sector activity slowed in August. despite the summer travel peak, a private-sector survey revealed. on Wednesday.

The slower services activity expansion offset quicker. producing output growth, leaving the Caixin/S&& P Global. services buying managers' index (PMI) the same from July.

With factory owners cutting product prices to remain. competitive, consumers tightening their belts and the ailing. property sector stopping working to see meaningful rebound, the economy. faces increasing obstacles in tandem with external geopolitical. uncertainties.

China's steel sector now deals with a number of immediate obstacles,. consisting of the state of the home market, the domestic. service environment, an increase in protectionism globally and regional. policies, said ANZ analysts in a note.

Sales of building and construction steel on Sept. 3 eased from a one-day. gain, showing unpredictabilities in the domestic steel market,. said Chinese consultancy Mysteel.

Iron ore costs might continue to trek lower over the medium. term, as the rebound in rates over the last two weeks had been. somewhat unexpected provided the weak underlying principles, stated. Westpac analysts.

Other steelmaking active ingredients on the DCE were weaker, with. coking coal and coke down 2.53% and 2.07%,. respectively.

Most steel criteria on the Shanghai Futures Exchange lost. ground. Rebar lost about 1.9%, hot-rolled coil. shed 1.6%, stainless-steel dropped around. 0.8%, and wire rod was flat.

(source: Reuters)