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Dalian iron ore closes at most affordable in more than a year on weak Chinese steel outlook

Prices of Dalian iron ore futures fell for the fourth successive session on Wednesday to close at their least expensive in more than a year, as a multitude of weak Chinese financial data weighed on belief in the top consumer's. steel market.

The most-traded January iron ore contract on China's Dalian. Commodity Exchange (DCE) ended daytime trade 3.09%. lower at 689.5 yuan ($ 96.95) a metric load, completing at its. weakest level because Aug. 22, 2023.

The benchmark October iron ore on the Singapore. Exchange was 1.68% lower at $92.05 a lot, as of 0710 GMT.

Last week's blindly optimistic and unreasonable sentiment. rally is now being logically unwound, as the market when again. comes to terms with the realisation of dreadful downstream steel. demand-side fundamentals in China, said Atilla Widnell,. managing director at Navigate Commodities.

In spite of various policies targeted at stemming the downturn in. home rates and corresponding losses in wealth, it looks like. the market has made its peace that these measures will not. directly or immediately contribute to healthier building. activity and associated steel usage, added Widnell.

Growth in China's services sector activity slowed in August. in spite of the summer season travel peak, a private-sector survey revealed. on Wednesday.

The information begins the back of slowing growth in China's brand-new. home prices, as its crisis-hit residential or commercial property sector has a hard time to find. its bottom.

Immediate challenges dealing with China's steel sector likewise. include the domestic business environment, a rise in. protectionism globally and regional policies, stated ANZ experts in. a note.

On the other hand, inventories across 45 Chinese ports rebounded to. post a month-on-month gain of 3.4 million tons, said Chinese. monetary details website Hexun Futures.

Other steelmaking active ingredients on the DCE plunged, with. coking coal and coke down 5.21% and 4.66%,. respectively.

Most steel benchmarks on the Shanghai Futures Exchange lost. further ground. Rebar lost about 2.7%, hot-rolled coil. shed around 2.6%, stainless steel dropped. 1%, and wire rod was flat.

(source: Reuters)