Iron ore futures experienced a decline on Monday due to disappointing Chinese economic data, which dampened market sentiments.
According to the National Bureau of Statistics (NBS), China’s gross domestic product (GDP) only grew by 0.8pct from April to June, a significant slowdown compared to the 2.2pct growth registered in the first quarter.
Official data also revealed that property investment in China dropped by nearly 8pct in the first half of the year. This decline deepens the struggles of the property sector, which accounts for a significant portion of the world’s second-largest economy and serves as a major consumer of steel.
As a result, there is increasing pressure on policymakers to introduce new stimulus measures. However, analysts caution that any such measures are likely to be limited due to the heavy debts, especially in the struggling property sector.
At the Dalian Commodity Exchange, iron ore futures for the September contract fell by 0.89pct, closing at 832.5 yuan (USD 116.5). Similarly, Dalian coke and coking coal futures experienced declines of 1.86pct and 1.84pct respectively, with morning trades concluding at 2,167 yuan (USD 303) per ton and 1,390.5 yuan (USD 195) per ton.
Rebar futures decreased by 1.63pct, settling at 3,687 yuan (USD 516) per ton, while HRC futures dropped by 1.48pct, reaching 3,791 yuan (USD 531) per ton. Wire rod futures saw a 2.11pct decrease, reaching 4,042 yuan (USD 566) per ton. Stainless steel futures declined by 1.47pct to 14,760 yuan (USD 2,066.5) per ton.
1 USD / 7.14 yuan
