On Tuesday, iron ore prices rose. The previous session, iron ore prices plunged nearly 7 per cent to below $110 a tonne, the first time they have fallen below that level since August last year. Iron ore prices have fallen by about a quarter since early January.
Ongoing problems facing China's steel-intensive property sector have dragged down demand. The crisis looks far from over, with government-backed developer China Vanke Co. having its investment-grade credit rating cancelled by Moody 's Ratings. The agency said credit metrics and liquidity will weaken due to falling home sales and financing uncertainty.
The annual National People's Congress, which closed on Monday, brought few positive signs for investors, and hopes for a pick-up in construction activity after the Lunar New Year holiday have not materialised. Iron ore stocks at Chinese ports have swelled to the highest level in a year.
Iron ore rose 1.3 per cent to $108.65 a tonne as of 2.43pm Singapore time. Dalian steel futures were little changed, while Shanghai steel futures climbed.
Prices of base metals fell on the London Metal Exchange (lme) ahead of the release of U.S. inflation data, which could affect the timing of the Federal Reserve's (fed) shift to monetary easing. Aluminium prices fell {{0}}.3%, copper prices fell 0.1%.
