SINGAPORE: Prices of Dalian iron ore futures languished on Tuesday around their lowest levels in two weeks, as a slew of weak economic data from top consumer China clouded demand outlook, while strong global supply also added pressure on the market.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 4.27% lower at 707 yuan ($99.25) a metric ton.

The contract hit an intraday low of 702.5 yuan, its weakest level since Aug. 20.

The benchmark October iron ore on the Singapore Exchange was 1.97% lower at $94.90 a ton, as of 0330 GMT.

“Iron ore futures fell back below USD100/T following further evidence of weak Chinese demand, as the ongoing contraction in factory activity was joined by a deepening slump in the property sector,” ANZ analysts said in a note.

China’s manufacturing activity sank to a six-month low in August, an official survey showed, pressuring policymakers to press on with plans to direct more stimulus to households.

Meanwhile, the country’s new home prices rose at a slower pace in August, as its crisis-hit property sector struggles to find its bottom after a batch of supportive policies.

Dalian iron ore slumps on bleak China data, higher inventories

The total volume of iron ore shipments dispatched to global destinations from 19 ports and 16 mining companies in Australia and Brazil jumped 10.9% week-on-week to reach 29 million metric tons during Aug. 26-Sept. 1, Chinese consultancy Mysteel said.

The spike was due to a surge in shipping volume of Brazilian iron ore, which leapt 39% from the previous week to mark its highest weekly shipment since 2019, Mysteel added.

Other steelmaking ingredients on the DCE extended losses, with coking coal and coke down 1.6% and 1.38%, respectively.

Most steel benchmarks on the Shanghai Futures Exchange were weaker.

Rebar slid about 2.2%, hot-rolled coil dropped around 2%, stainless steel lost 0.77%, while wire rod was flat.