Singapore November 11 2024: Iron ore fell toward $100 a ton as Beijing’s latest efforts to revive the economy left investors disappointed, while an expansion in Chinese port stockpiles highlighted ample supplies.
Futures declined as much as 2% in Singapore after slumping on Friday, when the Chinese government unveiled a debt-swap plan but stopped short of measures to directly boost domestic demand, including in the beleaguered property sector.
The steel-making staple has retreated by more than a quarter this year, hurt by China’s property slump and signs that miners are boosting production. With mills in the top producer struggling to sell steel domestically given the weak demand, exports of the alloy surged to the highest level since 2015 last month.
Port holdings of iron ore in China have expanded for the past four weeks to the highest level since early September. On a seasonal basis, the inventories are at their biggest ever for this time of year.
Iron ore futures fell 1.7% to $100.85 a ton as of 10:47 a.m. in Singapore after losing 2.8% on Friday. In China, yuan-priced contracts in Dalian dropped 2.3%, and steel futures in Shanghai also declined.
Shares of leading iron ore mining companies dropped in Australia, with BHP Group, Fortescue Ltd. and Rio Tinto Group all declining.
In base metals, copper added 0.2% to $9,458.50 a ton on the London Metal Exchange after capping a sixth straight weekly decline. Aluminum rose 0.2%, while nickel dropped 0.9%.
