yolowire.com - IronOre prices have turned volatile amid rising uncertainty over demand in China.
Commodities traders are trying to assess the demand scenario in China for the steelmaking material heading into this year’s second half.
The current uncertainty has led to volatile price swings for iron ore in recent days.
Iron ore’s price is currently up 3.6% on July 11 and trading at $108.15 U.S. per ton after falling 4.1% during the previous trading session. Year-to-date, iron ore prices are down nearly 25%.
The price decline is largely due to growing pessimism over demand for iron ore in China’s struggling construction sector.
Traders are hoping to get more clarity on the demand outlook from a major political gathering in Beijing over the next week.
The Third Plenum, a meeting of China’s Communist Party leadership, takes place in coming days and will set policy priorities, including construction intentions for the remainder of the year.
In recent weeks, officials in Beijing have announced new policies aimed at reviving sluggish home sales and boosting overall construction in the nation of 1.4 billion people.
The policy measures come as contracted sales among China’s largest property developers have declined at least 20% this year.
Analysts say they expect iron ore prices to remain volatile until markets get a clearer outlook on the demand for steel within China.