Iron ore futures contracts on the Dalian and Singapore exchanges fell on Wednesday (3), with the crisis involving developers in China, the world’s largest steel producer, overcoming the improvement in margins at mills.
The top-traded ore contract for September on China’s Dalian Commodity Exchange ended a volatile trading session down 0.8% at 786.50 yuan ($116.44) a tonne.
On the Singapore Stock Exchange, the steel ingredient contract for next month fell 1.5% to $113 a tonne, extending losses into a fourth session.
Sentiment was shaky after iron ore’s solid gains last week. A private survey on Monday showed that new home prices in China and sales volume fell in July from the previous month.
China’s housing market, already facing a debt crisis and weak demand, has been further shaken recently by a mortgage boycott.
Analysts said confidence is unlikely to be restored quickly, despite government support for the industry.
China’s struggling real estate sector and the country’s decarbonization target, which involves cutting annual steel production for the second year in a row, remain top concerns for iron ore traders, although the recovery in steel margins offers support. .
Source: CNN Brasil
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