VINACHEM

Iron ore fell as the latest economic data in China underscored an uneven start to the year for the world’s second-biggest economy, with new home prices falling again.

Futures of the steel-making ingredient were near $101 a ton, declining from the highest close this month on Friday. China’s economic challenges continue to weigh on the iron ore and steel market, despite some signs of short-term demand optimism.

China’s new home prices fell at a quicker pace in February, worsening for the first time in six months despite government attempts to boost the sector. This decline may dim investors’ hopes that the real estate market is close to bottoming out.

Meanwhile, steel output data showed China’s mills produced 1.5% less metal at the start of the year than in the same period last year. Beijing said it planned to push the steel industry to cut output this year, without giving more details, to deal with overcapacity and restore industry profits.

The move comes as the US imposes tariffs on metals and countries around the world rush to stem steel imports from China, the dominant producer whose exports surged close to a record last year.

Singapore iron ore futures fell 1.6% to $102.30 at 10:45 a.m., while futures on the Dalian exchange also fell more than 1%. Hot-rolled coil future contracts and rebar also declined.