FX.co ★ Iron Ore Eases on Weak China Data

Iron ore futures dipped below CNY 800 per tonne on Monday, retreating from recent multi-week peaks. This decline follows underwhelming economic data from China, the largest consumer, highlighting ongoing challenges in the property sector. In August, new home prices decreased by 0.3% compared to the previous month, continuing a downtrend that began in May 2023, indicative of weak housing demand. Industrial production and retail sales also fell short of expectations, amid slack domestic consumption and Beijing's initiatives to address overcapacity. Additionally, the unemployment rate saw a slight uptick. Meanwhile, China's seaborne imports amounted to 25.6 million tonnes last week, significantly exceeding the five-year average of 22.1 million tonnes. August's total imports approached 112.40 million tonnes, driven by record seasonal shipments from Brazil and the resolution of port congestion following late-July typhoon disturbances.