Iron ore sags as China property woes eclipse rebound in steel profits

Aug 3 (Reuters) - Dalian and Singapore iron ore futures fell on Wednesday as a crisis engulfing property developers in China, the world's top steel producer, outweighed improving margins at mills.

Iron ore's most-traded September contract on China's Dalian Commodity Exchange DCIOcv1 ended volatile daytime trade 0.8% lower at 786.50 yuan ($116.44) a tonne.

On the Singapore Exchange, the steelmaking ingredient's front-month September contract was down 1.5% at $113 a tonne, as of 0700 GMT, extending losses to a fourth session.

Sentiment has turned shaky after iron ore's solid gains last week. A private survey showed on Monday that China's July new home prices and sales volume both fell from a month earlier.

China's property market, which is already grappling with a debt crisis and weak demand, has been further rocked recently by a mortgage boycott.