Iron ore prices plummeted on Thursday as investors reacted negatively to China’s latest economic stimulus measures. The market expressed disappointment over the limited scope of policies aimed at reviving the country’s struggling property sector.
Futures contracts for iron ore on the Dalian Commodity Exchange fell by 5.99%, closing at 746.0 yuan ($104.74) per metric ton. This marked the lowest level since September 30.
The benchmark iron ore contract for November delivery on the Singapore Exchange also dropped by 5%, reaching $99.5 per ton.
China’s Ministry of Finance announced plans to expand its list of eligible housing projects for financing, aiming to increase bank loans for these projects to 4 trillion yuan ($562 billion) by year-end.
However, market participants viewed these measures as insufficient to address the property sector’s underlying issues.
Cameron Law, an analyst at Navigate Commodities, noted that fiscal stimulus expectations fell short. The Ministry failed to extend support beyond existing credit measures for property developers completing unfinished construction projects.
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