Iron ore prices have fallen below $100 a ton as the market assesses the outlook for China’s property sector, which is expected to deteriorate sharply.
Economic analysts expect China’s home prices and sales to continue falling next year, although the decline may be slower than in 2024. The price of iron ore, a key ingredient for steelmaking, has fallen by about a third this year and is among the world’s worst performing commodities.
Iron ore prices rose earlier this month on optimism that pledges from China’s top leadership would boost the economy and property market, but sentiment has quickly soured.
The state-backed China Metallurgical Industry Planning and Research Institute forecast the country’s steel demand to fall 4.4% this year and 1.5% in 2025, according to estimates released on Friday.
Singapore futures fell to a low of $99.90 a tonne before paring some losses, down 0.6% at $100.65 a tonne at 11 a.m. local time. Dalian iron ore and Shanghai steel were slightly higher.
Base metals on the London Metal Exchange were broadly higher, with copper up 0.3% to $8,941 a tonne, nickel up 0.7% and zinc up 0.9%.
