Iron ore prices for cargoes with 62% iron content fell below $104, as China's lack of strong economic stimulus measures dampened demand prospects in the world's largest metals consumer, disappointing investors.
Iron price falls under $104
On Friday, China announced a 10 trillion yuan debt package aimed at easing local government financing and stabilizing its slowing economic growth. However, the absence of direct stimulus failed to meet market expectations. Attention has now shifted back to concerns over higher tariffs and escalating tensions between the US and China under a potential second Donald Trump presidency.
Persistent deflationary pressures in China
Adding to the bearish sentiment, data released over the weekend showed persistent deflationary pressures in China. Meanwhile, iron ore imports into China remained above 100 million tons, signaling healthy inventories and putting additional downward pressure on prices.
