The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 1.27% lower at 774.5 yuan ($107.83) a metric ton, as of 0328 GMT on Friday. The contract has lost 1.34% so far this week.
The benchmark September iron ore on the Singapore Exchange was 0.14% lower at $101.95 a ton. The contract has lost 0.2% so far this week. China’s crude steel output dipped to a seven-month low in July, down 4% from June and marking a second straight monthly decline.
The decline reflects ongoing efforts to curb overcapacity, while high temperatures and heavy rainfall restricted outdoor construction activity.
China’s new home prices fell 0.3% from the previous month in July, with demand remaining muted despite more local governments rolling out incentives for home buying.
At the same time, property investment declined 12% in the first seven months of the year from a year earlier. However, the year-on-year declines are narrowing across tier-one, tier-two, and tier-three cities. The central government has maintained calls to stabilise the market in recent months, signalling the potential for further policy support.
