Iron Ore Under Pressure as China Property Contagion Fears Rise
Iron ore stayed around $100 a ton after sinking Thursday, with the steep drop triggered by long-term pressures on China’s steel industry and homebuyers there boycotting mortgage payments, roiling the property market. Futures plunged almost 8% in Singapore Thursday to the lowest since late November, and were steady on Friday.
Until Thursday, China’s prolific and persistent stimulus plans to shore up the beleaguered construction industry had helped keep iron ore prices above $100 a ton. But they tumbled amid reports that disgruntled homebuyers are rebelling against loan payments on unfinished projects. Mortgage payments are drying up for almost 100 projects across 50 cities, stoking panic that full-blown contagion in the property market is looming.
Futures in Dalian plunged more than 6% following their 5% decline on Thursday, while steel contracts in Shanghai dropped further to their lowest levels since the second half of 2020.
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