Iron ore futures drop

The benchmark December iron ore on the Singapore Exchange slipped 2.16% to $103.25 a ton, as of 0738 GMT. With uncertainty on the U.S presidential election dissipating, the market is awaiting details of China’s fiscal spending, said analysts.

Some market watchers expect most funds will go in easing local government debt burdens and won’t offer much of a boost to near-term economic growth.

“We expect the impact from the macroeconomic factor to gradually recede and prices in the ferrous market will reflect more influence from fundamentals,” analysts at Sinosteel Futures said. Demand for the key steelmaking ingredient contracted further and persistently high imports led to continued pick-up in portside stocks, weighing on prices.

The average daily hot metal output fell for the second straight week by 0.6% on the week to 2.34 million tons as of Nov. 8, while profitability among steelmakers slid for a third consecutive week to 59.74, a survey by consultancy Mysteel showed.