Mining stocks are on track for the third consecutive month of losses, the longest losing streak since 2021 as persistent worries about China’s economy weigh on the performance of iron ore, copper and coal producers.
Singapore iron ore futures dropped 1.3 per cent to $US111.15 a tonne in late-afternoon trading on the November contract. Dalian futures fell 2.3 per cent to $US123.20 a tonne on the equivalent contract. ANZ analysts Daniel Hynes and Brian Martin said in a note to clients that the likely default by the Chinese property developer raised concerns weak demand in the housing market “remains a headwind for steel and iron ore”.Terra Capital portfolio manager Matt Langsford said despite the latest losses in the materials sector, he thought the long-term forecasts for iron ore were “too low.”
“That’s what the market is looking for in China, and then probably a rolling over of the USD” for the iron ore price to improve.