Dalian iron ore posts largest daily loss in nearly two years
Updates closing prices and adds details
By Gabrielle Ng
SINGAPORE, Sept 2 (Reuters) -Dalian ore futures prices tumbled to log their steepest daily fall in almost two years on Monday, weighed down by a batch of dismal economic data from top consumer China.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 4.36% lower at 723.5 yuan ($101.83) a metric ton, posting its largest daily loss since Oct. 31, 2022.
The contract hit an intraday low of 721.5 yuan, its weakest level since Aug. 26.
The benchmark October iron ore SZZFV4 on the Singapore Exchange was 4.14% lower at $96.85 a ton, as of 0715 GMT.
China's manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, the National Bureau of Statistics purchasing managers' index (PMI) showed on Saturday, pressuring policymakers to press on with plans to direct more stimulus to households.
Prices of new homes in China rose at slower pace in August, a private survey showed on Sunday, as the crisis-hit property sector struggles to find its bottom after a slew of supportive policies.
The weaker PMI data, which includes the steel industry, shows the sector has obvious off-season characteristics, as market demand continues to decline and steel production is reduced, Chinese financial information site Hexun Futures said in a note.
Alongside an expected rise in supply, China's steel exports may come under threat as tensions rise with trade partners, said ANZ analysts.
China's new export orders fell for the first time in eight months and at the fastest pace since November 2023, a private sector survey showed on Monday.
Other steelmaking ingredients on the DCE lost further ground, with coking coal DJMcv1 and coke DCJcv1 down 3.66% and 3.52%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange were weaker. Stainless steel SHSScv1 slid nearly 2.4%, rebar SRBcv1 lost 2%, hot-rolled coil SHHCcv1 declined around 1.8%, while wire rod SWRcv1 was flat.
($1 = 7.1048 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Sonia Cheema and Sherry Jacob-Phillips
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
