Fresh Lows Back Early Nov 2023, As China Property Headwinds Persist

Iron ore has started off the week on a soft note. The active Singapore contract back close to $116/ton, off a further 3.2%. This comes after last week's 8.55% drop, although we did see some stability through Thurs/Fri trade.

• The active contract is now back to levels last seen in early Nov last year. Sentiment around China housing still looks quite uncertain in terms of any significant rebound, while China real estate equities have lagged the broader market gains in recent weeks.
• Iron ore inventories at China ports are climbing, recording a +5.43% gain last week. We are now up +26.9% from late Oct lows last year, which also points to less robust demand onshore, all else equal.
• We get the official PMI readings this Friday for China, which will be an important update for the mnauftacuring sector.