Iron ore futures prices declined for a second straight session on Thursday, as weaker-than-expected July factory activity data in top consumer China raised demand concerns.

The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! traded 1.44% lower at 786.5 yuan a metric ton, as of 0230 GMT.

The benchmark September iron ore (SZZFU5) on the Singapore Exchange was 0.75% lower at $100.95 a ton, as of 0220 GMT.

China’s manufacturing activity shrank for a fourth straight month in July, an official survey showed Thursday, suggesting a surge in exports ahead of higher U.S. tariffs has started to fade while domestic demand remained sluggish.

Prices of the key steelmaking ingredient softened on Wednesday after hopes faded that Beijing would unveil more stimulus measures at its July Politburo meeting that set the economic course for the reminder of the year.

A policy readout from a Chinese leadership meeting underwhelmed investors, ANZ analysts said in a note.

“It included a more proactive fiscal agenda and moderately loose monetary policies. However, the readout didn’t provide any details of large-scale stimulus measures,” they said.

Other steelmaking ingredients on the DCE also lost ground, with coking coal NYMEX:ACT1! and coke (DCJcv1) down 6.16% and 2.73%, respectively.

Steel benchmarks on the Shanghai Futures Exchange retreated. Rebar RBF1! lost 2.57%, hot-rolled coil EHR1! fell 2.42%, wire rod (SWRcv1) slid 2.47% and stainless steel HRC1! shed 0.93%.
Source: Reuters