Iron ore futures rose at the opening, despite some dips toward the close but still managed to book positive gains on the day session.
The futures of Dalian Commodity Exchange (DCE) for January delivery then rose by 1.70% day-on-day or up RMB 11.50 to RMB 688.50/mt, during the day trading session on Monday.
The rebar futures however, dropped by 1.67% day-on-day or down RMB 82 to RMB 4,825/mt, during the day trading session.
Mixed steel outlook for Q4
The volatile trading session reflected the mixed market outlook for steel demand during the traditional off peak winter period, as construction activities slowed down.
The slowdown affected lower demand for iron ore, as the country’s import of iron ore dropped to 95.61 million mt in September, down 1.93% on-month, due to slower custom clearance and port congestion delays.
Thus, many trade participants expected bearish steel demand for Q4, in view of power energy rationing, stricter sintering curbs and softening finished steel demand.
Construction project resumes for debt-ridden property developer
There was some uptick in the market, as China Evergrande Group had restarted more than ten property projects in southern China, including the city of Shenzhen according to an statement on Oct 24.
The restart of construction projects had raised some market confidence, after the property developer suspended projects in late September with reports of more than $300 billion in liabilities.
However, the company was not out of the woods yet, as it was estimated to have a portfolio of 1,300 real estate projects across China and did not disclose which one had been suspended due to lack of fundings.