Iron ore spot markets softened on Friday, although closed higher on the week.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 0.22% to $58.72 a tonne, trimming it’s weekly advance to 2.5%.
Year to date it has now gained 34.8%.
Perhaps explaining the decline in spot markets, the dip coincided with the release of Chinese new house price data for September earlier in the session, revealing an increase from a year earlier of 11.2%.
While the fastest pace of growth seen in over five years, something that would normally be bullish for construction materials, including iron ore, the sharp acceleration in prices — up 2.1% alone last month — seemingly increases the risk that policymakers will announce additional measures to take heat out of the property market.
Providing no clear indication as to which direction spot prices will likely move today, Chinese iron ore futures closed fractionally higher on Friday evening.
The January 2017 contract on the Dalian Commodities Exchange last traded at 441.5 yuan, up 0.34% for the session.
Trade in Dalian will resume at midday AEDT.
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