SINGAPORE: Dalian iron ore futures prices fell on Friday and were on track for a weekly drop, weighed by data showing continued weakness in the Chinese property sector, and a softer steel market outlook.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 2.59% lower at 752.5 yuan ($105.69) a metric ton. It has lost 4.14% so far this week.

The benchmark November iron ore on the Singapore Exchange was 0.68% higher at $100.3 a ton, as of 0340 GMT.

It is down 6.2% so far this week. China’ economy grew 4.6% in July-September, official data showed, a touch above the 4.5% forecast in a Reuters poll but below the 4.7% pace in the second quarter.

Industrial output and retail sales for September also beat expectations.

However, new home prices fell at the fastest pace since 2015, showing continued weakness in the property sector, a key user of steel.

Dalian iron ore slops on higher global supply

The data comes after a key housing policy briefing on Thursday disappointed investors by failing to announce fresh stimulus measures.

“The market remains unimpressed with the focus on clearing inventory in the housing sector,” ANZ analysts said in a note.

“The increasing reliance on stimulus measures to prop up prices is likely to lead to ongoing disappointment for investors.”

Meanwhile, China’s crude steel output in September slid for a fourth consecutive month, dropping by 1.1% from August and 6.1% from a year before, missing expectations for a rebound.

The pace of decline, however, slowed from August, helped by Beijing’s raft of stimulus measures and an improvement in profitability at mills. Other steelmaking ingredients on the DCE tumbled, with coking coal and coke down 5.66% and 5.09%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were weaker.

Rebar slid 3.03%, hot-rolled coil lost 2.06%, wire rod shed almost 2.4% and stainless steel dropped 1.65%.