SINGAPORE: Dalian ore futures prices slid to their lowest in a week on Monday, weighed down by a batch of soft economic data from top consumer China, while increased inventories added pressure on the market.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 3.5% lower at 730.0 yuan ($102.76) a metric ton. The contract hit an intraday low of 728.5 yuan, its weakest level since Aug. 26.

The benchmark October iron ore on the Singapore Exchange was 3% lower at $98.0 a ton, as of 0330 GMT. China’s manufacturing activity sank to a six-month low in August as factory gate prices tumbled and owners struggled for orders, the National Bureau of Statistics purchasing managers’ index (PMI) showed on Saturday, pressuring policymakers to press on with plans to direct more stimulus to households.

Prices of new homes in China rose at slower pace in August, a private survey showed on Sunday, as the crisis-hit property sector struggles to find its bottom after a slew of supportive policies.

The weaker PMI data, which includes the steel industry, shows the sector has obvious off-season characteristics, as market demand continues to decline and steel production is reduced, Hexun Futures said in a note. Supply may increase as accumulated inventories continue to pressure the market, impacting steel demand significantly, Hexun Futures added. Total inventories of imported iron ore stockpiled at 45 major Chinese ports jumped 2.3% week-on-week to reach 153.7 million tons as of August 29, hitting a new peak since April 2022, said Chinese consultancy Mysteel. Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 3.16% and 2.65%, respectively.

Most steel benchmarks on the Shanghai Futures Exchange were weaker. Stainless steel slid nearly 2.1%, rebar lost about 1.8%, hot-rolled coil declined around 1.4%, while wire rod was flat.