FX.co ★ Iron Ore Steady as Markets Weigh Mixed China Data

Iron ore futures remained stable at approximately CNY 764.5 per tonne on Tuesday, maintaining levels near a three-month peak as investors evaluated a diverse set of economic indicators from China, the world's leading consumer. Notably, June witnessed the sharpest monthly drop in new home prices in China over the past eight months, highlighting lingering challenges within the real estate sector. The Chinese economy expanded by 5.2% on a year-over-year basis in the second quarter, marginally surpassing forecasts of 5.1% but marking a slowdown from the 5.4% rate observed in the two preceding quarters. June's industrial production figures exceeded expectations, indicating robust manufacturing activity, although growth in retail sales fell short, heightening concerns about consumer spending. Recently, iron ore prices have surged amidst speculation that Beijing might implement further stimulus initiatives to bolster the property market. Concurrently, Chinese policymakers are striving to curb industrial overcapacity as a strategic move to address enduring deflationary challenges.