SINGAPORE: Iron ore futures extended losses to a second session on Wednesday, as a weaker global steel market outlook and softer forecasts for China’s economic recovery overshadowed the top consumer’s latest raft of stimulus measures.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.91% lower at 746.0 yuan ($104.60) a metric ton.

The benchmark November iron ore on the Singapore Exchange was 2.0% lower at $98.6 a ton, as of 0702 GMT.

Global crude steel production in September fell 4.7% from a year earlier to 143.6 million tons, with China’s output dropping 6.1% to 77.1 million tons, World Steel Association data showed on Tuesday.

“We are making significant downward revisions to our 2024 steel demand outlook for most major economies, reflecting the persistent weakness in manufacturing alongside lingering global economic headwinds,” the association said in a separate note.

China will account for less than half of global steel consumption in 2024 amid the ongoing downturn in its property sector, it said, adding that more substantial government support for the real economy could bolster its steel demand in 2025.

For now, Beijing’s latest stimulus measures will not meaningfully boost domestic demand, leaving a major source of trade friction intact, US Treasury Secretary Janet Yellen and International Monetary Fund chief economist Pierre-Olivier Gourinchas said on Tuesday.

Iron ore market sentiment improved following new stimulus measures announced last Friday but as the policies have yet to amount to any visible benefit, there is no major change in fundamentals and expectations for demand improvement remain weak, said Chinese financial information site Hexun Futures.