Iron ore futures prices moved in a tight range on Friday, as investors were digesting mixed signals: surprisingly firm demand data versus still weak property market data in top consumer China.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 0.26% higher at 772.5 yuan ($108.45) a metric ton.

The benchmark December iron ore on the Singapore Exchange was 0.33% lower at $102.45 a ton, as of 0722 GMT.

Bolstering sentiment was better-than-expected demand data with the average daily hot metal output, a gauge of ore demand, rising 1.1% from the week before to a three-week high at 2.37 million tons in the week as of November 13, data from consultancy Mysteel showed.

Ore consumption typically slows in winter as mills scale down operations as steel consumption languishes with low temperature hindering outdoor activities.

The boost from firm near-term demand was offset by a batch of data pointing to a continuously struggling property market, a major steel consumer.

China’s new home prices fell at the fastest monthly pace in a year in October. Leading indicators including property investment and new construction starts exhibited a continued decline.

Additionally, new loans by Chinese banks fell sharply in October from the previous month and missed market expectations, amid caution on economic uncertainties and trade tensions between Beijing and Washington.

On a weekly basis, both benchmarks have climbed around 1% so far this week, aided by hopes of potentially fresh stimulus unveiled by Beijing in the Politburo meeting due in late December to support the Chinese economy, said analysts.

Further price upside will be limited, suppressed by growing supply and seasonally slowing demand, analysts at broker Jinrui Futures said in a note.

Coking coal and coke, other steelmaking ingredients, slipped 1.77% and 0.98%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar ticked up 0.43%, hot-rolled coil was little changed, wire rod shed 1.81% and stainless steel slid 0.76%.
Source: Reuters