HomeMarket NewsMiningIron ore price falls despite China's support measures

Iron ore price falls despite China’s support measures

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The benchmark October contract for iron ore on the Singapore Exchange has dropped over 2% this week, following a peak in pricing last week.

Meanwhile, the January iron ore contract, which is the most actively traded contract on China’s Dalian Commodity Exchange, increased by 0.6% to reach 869 yuan ($119.03) per ton during morning trading.

According to reports from state media, China has announced 22 measures to support the private economy and remove barriers to market access. This move is aimed at boosting economic growth.

Additionally, Rio Tinto, a mining company, has paused work at a site in Australia due to safety concerns after a tree and a rock fell from a rock shelter area near the site.

Furthermore, Moody’s has revised its outlook on four Chinese real estate firms to β€œNegative” from β€œStable” following the negative outlook it recently assigned to the country’s property sector.

β€œGiven China’s sluggish growth and investor concerns in the property and financial sectors, these challenges are likely to persist,” noted analysts from Westpac in a recent report.

Read More: JPMorgan raises iron ore price outlook until 2025

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