Iron ore prices fall on real estate weakness in China

The September iron ore contract on the Dalian Commodity Exchange (DCE) was trading at 813 yuan/ton ($113.49), down 0.49% at 06:11 GMT.

August iron ore fell 0.61% to $ 104.7/tonne on the Singapore Exchange.

China's outstanding real estate loans hit a two-year high in June following a series of real estate measures aimed at stabilising the sector.

Despite ongoing policy support, the decline in the real estate sector continues to negatively impact the economy. Real estate investment declined in the first half of the year, and new home prices in June saw their steepest monthly decline in eight months.

The announcement of a $170 billion hydropower plant in Tibet could provide a major boost to the struggling concrete and steel sectors, analysts said.

Meanwhile, Japan launched an anti-dumping investigation into stainless steel sheet imports from China and Taiwan. Data shows these imports are sold at 20-50% lower prices in Japan than in China.

In DCE, coke and coke increased by 9.24% and 2.22% respectively.

Coking coal prices have been high due to high demand from the hydropower project as well as rumors of possible government inspections that could lead to supply disruptions.

Steel indices on the Shanghai Futures Exchange were mostly down. Hot-rolled coil rose 0.15%, wire rod rose 2.48%, stainless steel rose 0.04%, while rebar was flat.