BEIJING: Iron ore futures prices extended their declines to a third straight session on Wednesday, as weakening fundamentals of the key steelmaking ingredient outweighed more property stimulus in top consumer China.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) fell 1.83% to 884.5 yuan ($122.09) a metric ton, as of 0119 GMT, after falling more than 2% on Tuesday.

The benchmark June iron ore on the Singapore Exchange was 0.08% lower at $117.8 a ton.

“I am not that optimistic about iron ore, as the hot metal output is close to a ceiling while supply has hovered at a relatively high level,” said Chu Xinli, a Shanghai-based analyst at China Futures, adding that persistently rising portside stocks are further weighing on prices.

The persistent price decline came even as China’s city of Shenzhen, a key technology and manufacturing hub, will lower the minimum down payment ratio required of first-time home buyers to 20%, while southern city Guangzhou will lower the ratio to 15%, local media reported on Tuesday.

The commercial hub Shanghai announced on Monday to lower the ratio for first home purchases to 20%, and cut the ratio for second home purchases to 30% for suburban areas and to 35% for the rest of the city.

Other steelmaking ingredients on the DCE posted a further loss, with coking coal and coke down 1.86% and 0.66%, respectively. Steel benchmarks on the Shanghai Futures Exchange were weaker.