SINGAPORE- Dalian iron ore futures dropped on Friday as property woes in China continued to linger and on news of a limit on trading volumes, though losses were limited by signs of recovering steel demand.
The most-traded January iron ore on China’s Dalian Commodity Exchange fell 0.4 percent to 963.5 yuan ($132.96) per metric ton at closing, but gained 1.4 percent this week, recording its fifth consecutive week of gains.
On the Singapore Exchange, the benchmark December iron ore was down 2.2 percent at $130.96 a ton. However, the contract has risen 3.3 percent so far in the week, heading for its fourth straight weekly gain.
China’s new home prices fell for a fourth month in October, official data showed on Thursday, as government support measures did little to lift the gloom hanging over the country’s consumers and its debt-laden property sector.
“The National Development and Reform Commission (NDRC) is investigating what they consider to be “unreasonably high” prices and the Dalian has adjusted iron ore futures trading limit,” Atilla Widnell, managing director at Navigate Commodities, said on Thursday. -Reuters
