Iron ore prices fell after hitting a two-week high on rising port stocks in China, the world’s largest importer of the metal used in steelmaking.
Singapore iron ore futures for November delivery fell 1.06% to $102.30 a tonne.
This came after Shanghai-based steel market data provider Steel Home revealed that iron ore stocks at Chinese ports rose for the second week in a row to 147.7 million tonnes, approaching their highest seasonal level in recent years, according to Bloomberg.
Iron ore made significant gains in September, supported by economic stimulus measures recently implemented by Beijing, which boosted hopes of a revival in demand for it, an end to the Chinese real estate crisis and a rebound in demand for steel.
But its futures are down about 7% this month as investors grow frustrated about the effectiveness of China’s stimulus measures in supporting demand. That’s despite the China Steel Industry Association announcing on Friday that it would accelerate efforts to propose a set of policy measures and recommendations to restructure the sector amid weak demand, rising competition, protectionist trade policies and a deteriorating real estate sector.