Iron ore hits two-week low on weak China factory activity data
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) closed daytime trade 2.38% lower at 779 yuan ($108.32) a metric ton, the lowest since July 17. Benchmark September iron ore on the Singapore Exchange fell 1.83% to $99.85 a ton, as of 0748 GMT, its lowest since July 16. China's manufacturing activity shrank for a fourth straight month in July, an official survey showed on Thursday, suggesting a surge in exports ahead of higher US tariffs has started to fade while domestic demand remained sluggish.
Prices of the key steelmaking ingredient softened on Wednesday after hopes faded that Beijing would unveil more stimulus measures at a July Politburo meeting that set the economic course for the remainder of the year.
A policy readout from a Chinese leadership meeting under whelmed investors, ANZ analysts said in a note. 'It included a more proactive fiscal agenda and moderately loose monetary policies. However, the readout didn't provide any details of large-scale stimulus measures,' they said.
Other steelmaking ingredients also lost ground. Coking coal hit the price limit with a fall of 8% and coke slid 4.93%. Steel benchmarks on the Shanghai Futures Exchange retreated. Rebar lost 4.19%, hot-rolled coil fell 3.56%, wire rod slid 4.46% and stainless steel shed 1.04%.
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