Iron drops from the highest month

Iron prices have fallen, after the latest economic data showed an unbalanced start for the year in the second largest economy in the world, amid the decline in the prices of new homes. The prices of the future contracts for the mineral used to make steel were approximately $ 101 per ton, reminiscent of the highest closing price this month on Friday. The economic challenges facing China still have a negative impact on the iron and steel market, despite some references to optimism about the short-term demand. On the other hand, the prices of new homes in China are faster in February, representing the first fall in 6 months, despite the government’s efforts to support the sector. The decline can undermine the hope of investors in the real estate market approaching the bottom. The prices of future iron contracts at the same time showed steel production data that the production of factories in China fell 1.5% at the beginning of the year compared to the same period last year. Beijing announced its intention to encourage the steel sector to reduce production this year to confront the surplus production and the return of the sector to achieve profits, even if it did not disclose more details. The move coincides with the United States that impose customs on minerals, and countries around the world to push them to reduce steel imports from China, the most important productive country whose exports increased to an unprecedented level last year. The future iron ore contracts in Singapore fell 1.6% to $ 102.3 at 10: 45 hours, while the Dalian stock exchange fell by more than 1%. The futures of the hot steel and the armament are also reduced.