The decline in China’s new home sales this year may slow to 7 per cent, Fitch Ratings says after revising its forecast from a previous slump of 15 per cent
Yuke Xiein Beijing
Published: 6:30pm, 5 Aug 2025Updated: 6:34pm, 5 Aug 2025
China’s slumping property market may finally be reaching a bottom, as credit has resumed flowing to developers while the nationwide inventory of unsold homes has shrunk, analysts said.
The decline in China’s new home sales this year may slow to 7 per cent, Fitch Ratings said on Tuesday after revising its forecast from a previous decline of 15 per cent, due to the better-than-expected performance of the property market in the first half. The credit-rating agency also lowered its forecast of the sales drop by gross floor area to 5 per cent, better than a previous estimate of 10 per cent.
Government support is helping, as relaxed rules around home purchases, lower mortgages, interest rate cuts, as well as the absorption of excess housing inventory via special-purpose bonds issued by local governments.Five early indicators are supporting China’s housing market recovery, HSBC analysts wrote on Monday. These include improving credit conditions among developers, industry consolidation, inventory clearance, stronger land sales and improving market-oriented pricing models for residential homes, especially in higher-tier cities.
Cranes on residential buildings under construction by the Chinese property developer China Overseas in Nanjing, in eastern China’s Jiangsu province on April 25, 2025. Photo: AFP
“The downturn has been shorter than the ‘lost decade’ rhetoric that some investors embraced,” the analysts wrote. Since the property crisis began in 2021, the market has consolidated rapidly, with the top 15 state-owned developers expanding their market share from 15 per cent four years ago to 23 per cent in the first half of this year – a shift that has been instrumental in stabilising the sector, HSBC said.
Inventory clearance is another key indicator. While housing stock remains abundant nationwide, 13 major cities tracked by the bank posted a 15 per cent inventory decline year on year as of June. Shenzhen, the southern tech hub bordering Hong Kong, saw housing stock fall close to 50 per cent, while in Hangzhou and Suzhou, inventory dropped by 23 and 20 per cent, respectively.
A view of Beijing’s skyline on July 17, 2024. Photo: AP
HSBC highlighted the improving credit situation among developers – as seen in Country Garden’s progress in July to restructure US$178 million in offshore debt – as another major factor contributing to a broader market recovery. Such progress showed that “banks have become more accommodative” in resetting their expectations on property projects’ future cash flows and reflects their willingness to absorb losses.
“We believe banks’ changes in attitude will facilitate more developers’ restructuring, and ultimately help achieve faster market clearance and risk resolution in the property sector,” wrote HSBC.
However, there are also near-term setbacks pointing to the shakiness of the recovery: new home sales dropped 12.6 per cent year-on-year, while home prices for 70 major cities declined 0.3 per cent month-on-month, – marking the worst performance in eight months, official data shows.
“The latest data highlight that the sector’s recovery remains tentative and is contingent on economic conditions, the job market’s performance and household income prospects,” wrote Fitch.
They expect headwinds on these fronts to continue in the second half of this year, challenging the sustainability of the housing market recovery. Meanwhile, a slowing economy as a result of increased US tariffs hitting exports will pose further challenges to the sector.
By City A.M - Aug 06, 2025, 1:00 PM CDT
Glencore has scrapped plans to move its primary listing from London as part of a major overhaul to reverse its declining share price and stuttering production.
Boss Gary Nagle confirmed on Wednesday the Anglo-Swiss commodities juggernaut was no longer assessing whether to move its main listing to New York, telling reporters it decided the move would not be “value accretive”.
Glencore revealed earlier this year that alongside an root-and-branch operational review to root out inefficiencies, it was also reassessing its financial home, in an announcement that rocked London’s already beleaguered public markets.
At the time, the mining group was one of the 20 most valuable members of the FTSE 100, but Nagle said the firms’ board had begun exploring whether other bourses – namely New York – could help them bet “the right valuation”.
But speaking to reporters, the group’s South African boss revealed the company had assessed it was unlikely to make it into New York’s S&P 500. As well as symbolic damage, missing out on the blue-chip index would mean Glencore would not gain access to vast amounts of investor cash pooled in tracker funds that invest an even amount in all the index’s 500 constituents.
Nagle made his comments shortly after the company revealed it had missed earnings estimates for the first half of 2025.
A difficult year for Glencore
The firm highlighted Donald Trump’s capricious tariffs and a stubbornly low coal price as major headwinds for the mining giant in what was a testing first half of the year.
Revenue was flat year on year in the six months to June 30, hovering around $117bn (£87.9bn). But the group said the White House’s on-off tariff-making and the fraught geopolitical landscape had led adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) to plummet 37 per cent, from $2.9bn to $1.8bn.
Adjusted EBIT also fell from $6.3bn to $5.3bn.
Beyond geopolitics, Nagle highlighted this year’s historically low coal prices and the “temporary but largely expected” operational issues in its copper production as also acting as headwinds to the group’s performance.
But he confirmed that the operational review of its entire portfolio had unearthed several efficiency opportunities to help “streamline [its] operating structure”.
“The review also identified c.$1bn of recurring cost savings opportunities (against a 2024 baseline) across our various operating structures, which are expected to be fully delivered by the end of 2026, with more than 50 per cent already targeted for the end of 2025,” Nagle said.
Despite the update on efficiences, Glencore shares were trading 4.6 per cent lower on Wednesday morning.
Copper aside, production remained on target, the group said, and it reiterated its guidance for the rest of the year.
It added that it had received $900m, completing its sale of former agricultural investment Viterra to Bunge in early July.
The fall in earnings compounds what has already been a difficult 2025 for the FTSE 100 mining and trading group, during which its share price has fallen to an all-time low since listing in 2011.
Shares in the group, which has a secondary listing in Johannesberg, are down 16.7 per cent this year alone despite rival miners like Fresnillo and Antofogasta being among the FTSE 100’s performers.
Last month, the accounting watchdog launched an investigation into Deloitte over its auditing of Glencore, after the mining and commodities group was mired in a corruption scandal.
Glencore pleaded guilty to criminal charges in 2022 after several investigations by police across the US, UK and Brazil, which unearthed bribery and market manipulation. It agreed to pay north of £1bn of penalties.
https://oilprice.com/Energy/Energy-General/Glencore-Scraps-London-Listing-Move.html
Clyde Russell - Asia Commodities and Energy Columnist
LAUNCESTON, Australia, Aug 7 (Reuters) - Markets often look to data such as China's imports of major commodities to discern clear trends about the state of the world's second-biggest economy.
But July's trade data provides little in the way of clarity, rather giving ammunition to both the case for an economy that is resilient and recovering, and one that is struggling for momentum.
Crude oil is a case in point.
The world's top importer, China received arrivals of 11.11 million barrels per day (bpd) in July, according to calculations based on official data released on Thursday.
On the bullish side of the ledger, this was up 11.5%, or 1.14 million bpd, from the 9.97 million bpd of July last year.
But if a bearish view is sought, July's imports were down 5.4%, or 1.03 million bpd, from June's 12.14 million bpd, and were also the weakest since January.
What is often ignored in discussions about the relative strength or weakness of commodity imports is the role of prices.
China has shifted in recent years to become a far more price-sensitive buyer of commodities, adopting a tactic of raising imports and lifting inventories when prices are deemed low, and trimming purchases when they rise too high or too soon.
China's crude oil imports were weak in the first quarter of this year, as arriving cargoes would have been arranged when prices were in an uptrend, with Brent futures reaching a high so far this year of $82.63 a barrel on January 15.
But oil imports rose in the second quarter as prices trended lower, with Brent dropping below $60 a barrel briefly in both April and May.
Since then prices have been trending higher, with increased volatility from geopolitical events such as Israel's June conflict with Iran and threats to Russian supplies from U.S. President Donald Trump and the European Union.
The higher prices are likely to make Chinese refiners cautious and some easing in imports is likely.
Perhaps the best indicator of the state of China's demand for crude is the year-to-date imports, which are up a modest 2.8%, to the equivalent of 11.25 million bpd.
It is also worth noting that China's domestic crude output rose 1.3% in the first half of the year, and that increasing electrification of the vehicle fleet is cutting gasoline demand.
The overall picture for crude oil demand in China is one that is neither robust or weak.
IRON ORE, COPPER
The same can be said of several other major commodities.
Iron ore imports of 104.62 million metric tons in July were down 1.3% from June but up 1.8% from July last year.
For the first seven months imports of the key raw material for making steel were down 2.3% at 696.57 million tons, a figure that fits with the small decline in steel production seen in the first half.
Imports of unwrought copper recovered in July to 480,000 tons, up 3.5% from June and 9.6% from July 2024, but they are still down 2.6% for the first seven months of the year.
This largely reflects the influence of uncertainty over U.S. tariffs on copper imports, which drew copper away from China to the United States in the first half.
But this trade is likely to reverse as Trump backed off imposing his 50% tariff on imports of refined copper, limiting it only to certain types of copper products.
With U.S. imports likely to decline in the second half as stockpiles are used up, Chinese copper buyers will get the opportunity to import more.
Coal imports managed a small increase in July, with arrivals of 35.61 million tons, up slightly from June's 33.04 million, but down 23% from July last year.
For the first seven months of the year, China's coal imports have slumped 13% as rising domestic output and lower coal-fired electricity generation cut the need for imports.
September WTI crude oil (CLU25) today is up +0.66 (+1.01%), and September RBOB gasoline (RBU25) is up +0.0353 (+1.69%).
Crude oil and gasoline prices are moving higher today after the dollar index (DXY00) fell to a 1-week low. Crude also rose on the lack of progress in ending the Ukraine-Russia war after US envoy Witcoff left Russia without a deal, which may prompt President Trump to add secondary sanctions to Russian energy exports.
Crude also found support today after Saudi Arabia's state producer, Saudi Aramco, raised the price for its Arab Light crude to Asian customers by $1 a barrel for September delivery, above expectations of a 90-cent-a-barrel increase.
Crude prices raced to their highs today on a bullish weekly EIA inventory report.
Crude prices have support after President Trump said last Monday that he would impose new tariffs on countries buying Russian energy unless Russia reaches a ceasefire with Ukraine by this Friday. JPMorgan Chase warned that if enforced, oil markets would be unable to ignore the impact of triple-digit tariffs on Russian oil, given the significant scale of Russian exports and limited OPEC spare capacity, which could potentially lead to a supply shock.
Concerns about a global oil supply glut are weighing on crude prices after OPEC+ on Sunday endorsed an additional 547,000 bpd increase in its crude production for September 1. OPEC+ is boosting output to reverse the 2-year-long production cut, gradually restoring a total of 2.2 million bpd of production by September 2026. After Sunday's meeting, the group said it will closely monitor demand and may maintain production levels, restart halted supplies, or reverse recent production increases. OPEC+ has 1.66 million bpd of supplies that are currently due to remain offline until late 2026. The International Energy Agency said inventories have been accumulating at a rate of 1 million bpd and that the global crude oil market faces a surplus by Q4-2025 equivalent to 1.5% of global crude consumption. OPEC July crude production fell -20,000 bpd to 28.31 million bpd.
The European Union recently approved fresh sanctions on Russian oil due to its aggression against Ukraine. The sanctions package includes cutting off 20 more Russian banks from the international payments system SWIFT, as well as restrictions imposed on Russian petroleum refined in other countries. A large oil refinery in India, part-owned by Russia's Rosneft PJSC, was also blacklisted. Additionally, 105 more ships in Russia's shadow fleet were sanctioned, pushing the number of sanctioned ships above 400.
https://finance.yahoo.com/news/crude-prices-rally-dollar-weakness-155324563.html
06 August 2025 09:55
The Trump administration is considering imposing new sanctions on Russia’s "shadow fleet" of oil tankers if President Vladimir Putin does not agree to a ceasefire in Ukraine by August 8. The Financial Times writes that this move would mark the first US sanctions on Moscow since Trump took office in January.
The "shadow fleet" consists of older tankers with obscured ownership that Russia uses to circumvent Western restrictions on its oil exports. These exports have helped fund Russia’s war effort. Targeting the vessels themselves, rather than their owners, has recently proven effective, as buyers avoid ships on sanctions lists.
While the Biden administration previously sanctioned over 200 tankers, Trump had avoided new sanctions in hopes of negotiating peace. However, frustration with Putin’s refusal to halt fighting has led to an ultimatum: agree to a ceasefire or face tougher penalties.
The US move would complement recent EU sanctions, which have blacklisted over 400 ships. These restrictions support a G7 price cap of $60 per barrel on seaborne Russian oil, but the shadow fleet has allowed Russia to sell above this limit, mainly to China and India.
Data show that sanctioned tankers’ oil shipments dropped sharply after blacklisting, from 48 million barrels monthly before to 13 million after. Experts say intensifying pressure on the shadow fleet would significantly hinder Russia’s war financing.
Trump discussed new sanctions with Ukrainian President Volodymyr Zelenskyy and plans to increase tariffs on India, a major Russian oil buyer. His special envoy, Steve Witkoff, is set to visit Moscow this week; Trump’s next steps depend on the envoy’s report.
Additional options include stricter enforcement of current sanctions, joining the EU’s upcoming dynamic price cap, or imposing secondary sanctions on banks and refineries facilitating Russian oil trade. Bipartisan legislation proposing steep tariffs on Russian energy buyers has also gained traction, with Trump considering support.
The White House warns of “biting sanctions” if Russia refuses peace but has withheld specific details pending further developments.
By Tamilla Hasanova
https://caliber.az/en/post/ft-trump-weighs-crippling-sanctions-on-russia-s-oil-shadow-fleet
The reduced price cap on Russian oil, introduced under the European Union’s 18th sanctions package, will take effect on September 3, 2025.
This was confirmed by Arianna Podestà, Deputy Chief Spokesperson of the European Commission, in a comment to Ukrinform on August 6.
“The reduced oil price cap will apply from September 3, 2025,” the spokesperson said.
She also noted that another provision of the package—a ban on financial transactions involving 22 additional Russian banks—will come into force on August 8.
Podestà added that most of the measures outlined in the 18th sanctions package have been in effect since mid-July, following its adoption by the Council of the European Union.
Unveiled on July 10, the 18th package introduced a sweeping set of measures aimed at tightening enforcement and disrupting the Kremlin’s key revenue streams. One of the most significant steps is the reduction of the oil price cap from $60 to $45 per barrel—marking the first such move since the start of Russia’s full-scale invasion of Ukraine.
The package also targets sanctions evasion by expanding the EU’s blacklist of Russia’s so-called “shadow fleet” by 77 vessels, bringing the total to 419. These ships are believed to be involved in the covert transport of sanctioned Russian oil.
Earlier, it was reported that US President Donald Trump is reportedly preparing to impose sanctions on Russia’s so-called shadow fleet of oil tankers unless Moscow agrees to a ceasefire in Ukraine by August 8.
Germany’s latest offshore wind auction without government subsidies failed to attract a single bid on Wednesday, alarming the local offshore wind sector, which is calling for a fundamental redesign of Germany’s renewable energy auctions.
The Federal Network Agency’s auction for 10.1 gigawatt (GW) offshore wind farms in the German part of the North Sea ended with no investor submitting a bid for any of the two proposed sites, the Federal Association for Offshore Wind Energy, BWO, said.
The auction flop signals that offshore wind power developers are wary of taking on riskier, zero-subsidy projects amid rising costs and supply chain issues.
BWO sees the failed auction “as an alarming signal and calls on the German government to fundamentally reform the auction design,” the association said.
“The current auction design forces developers to bear risks beyond their control without any protection,” said BWO’s managing director Stefan Thimm.
“The result sends a clear message: The German offshore wind market is currently not attractive to investors. The federal government is thus missing the opportunity for significant value creation and employment in Germany and Europe,” Thimm added.
Germany urgently needs to revamp the auction design and help eliminate bottlenecks in the supply chain, such as barriers to port expansions and modernization, the executive noted.
“The federal government must finally pave the way for a reliable CfD [contract for difference] system alongside long-term electricity supply contracts. Contracts for Difference lead to a reduction in electricity generation costs of up to 30 percent – the basis for competitive electricity prices,” Thimm said.
“Without this reform, further auctions could fail – and with them the energy transition.”
Last month, industry associations warned that Germany’s offshore wind power installations stagnated in the first half of 2025, with 9.2 GW as of June 30, the same as at end-2024.
Globally, the offshore wind industry continues to face significant headwinds relating to supply chain, regulatory, and macroeconomic developments.
Orsted, the world’s biggest offshore wind project developer, in May warned of a continued challenging environment for the industry.
By Charles Kennedy for Oilprice.com
Energy giant bp, and JERA, Japan’s largest power generation company, announced the completion of JERA Nex bp, combining each companies’ offshore wind assets to form a new equally-owned renewable joint venture.
According to the companies, the new joint venture has a net potential generating capacity of 13GW, which would establish it as one of the largest offshore wind developers, owners and operators globally.
The JV’s portfolio encompasses operational and development projects across nine countries, including 1GW of installed net generating capacity, a 7.5GW development pipeline and an additional 4.5GW of secured leases. When initially announcing plans for the joint venture in December 2024, bp and JERA agreed to provide up to $5.8 billion in capital funding for JERA Nex bp by the end of 2030.
Nathalie Oosterlinck, CEO JERA Nex bp said:
“JERA Nex bp begins life with a strong operating portfolio and an extensive development pipeline. We bring together two highly capable teams with the experience, relationships, purchasing power and unique global access of two of the East and West’s pre-eminent energy companies. This gives us the expertise and experience to find new ways to create value from offshore wind and become one of the world’s leading companies in the sector.”
The launch of the new venture follows the establishment of a new strategy by bp in February 2025, reallocating capital to increase oil and gas investment and reducing low carbon energy to less than 5% of the company’s capex allocation. bp also announced in July that it will sell its U.S. onshore wind business, bp Wind Energy, to power and energy infrastructure developer and operator LS Power.
William Lin, bp Executive Vice President for Gas & Low Carbon Energy, added:
“The JV allows bp to optimize and decapitalize our low carbon energy portfolio as we continue to maintain optionality for electron flows and more material value realization through this decade and the next.”
BP and JERA have been building offshore wind portfolios since 2019, with bp currently developing the Morgan and Mona projects in the UK Irish Sea, and Oceanbeat East and Oceanbeat West in Germany’s North Sea and obtaining secured leases off Scotland and the east coast of the U.S., while JERA acquired Belgium offshore wind player Parkwind in 2023, and subsequently launched renewables platform JERA Nex, which owns and operates wind farms in Belgium, Germany, Japan and Taiwan, and has a development portfolio with projects in areas including Japan, Ireland, and Australia. Alongside the transaction, the companies also announced the launch of JERA Nex bp Japan, focused on developing and operating projects in Japan
The new company is headquartered in London, with offices across Europe, Asia, U.S. and Australasia.
Satoshi Yajima, Chief Renewable Energy Officer of JERA and CEO of JERA Nex, said:
“This is a landmark day for JERA’s renewable energy journey. Our partnership with bp has accelerated the growth trajectory of JERA’s overall renewable energy strategy, and the completion of the JV formation reflects the strength and agility that will position JERA Nex bp for long-term success. With support from both partners, JERA Nex bp will serve as a cornerstone in helping the world realize a decarbonized energy future.”
https://www.esgtoday.com/bp-jera-combine-offshore-wind-assets-to-launch-new-joint-venture/
Farmland is one of the oldest asset classes, rivaling precious metals in its ability to preserve generational wealth.
Unlike stocks or fiat currencies, farmland and cropland are tangible, finite, and highly productive. As the global population continues to grow and demand for healthier food intensifies, arable land per capita is shrinking due to urban sprawl and environmental degradation. This makes farmland not just a low-volatility store of value, but also a necessary hedge against rising global instability and inflationary pressures.
The latest USDA Land Values 2025 Report from the National Agricultural Statistics Service (NASS) reports a 4.3% increase in average farmland values, pushing prices to a record $4,350 per acre. This follows a 5% ($200) increase between 2023 and 2024 and marks the fifth straight year of gains in agricultural real estate. Cash rents for cropland also hit a new high, rising .60% to $161 per acre.
Average Farm Real Estate Value – United States: 2011-2025
Average Cropland Value – United States: 2011-2025
2025 Cropland Value by State
Average Pasture Value – United States: 2011-2025
2025 Pasture Value by State
There's a reason billionaires like Bill Gates and Jeff Bezos are quietly buying up vast amounts of farmland: it's low-volatility and an asset that preserves and grows generational wealth.
https://oilprice.com/Energy/Energy-General/The-Soaring-Price-of-American-Farmland.html
First Quantum Minerals has entered into a $1 billion gold streaming agreement with a subsidiary of U.S.-based Royal Gold Inc., the Canadian miner announced on Tuesday, August 5. The deal covers part of the gold output from its Kansanshi copper and gold mine in Zambia and aims to support the company’s capital needs and reduce its debt.
Although Kansanshi is primarily a copper mine, it also produces gold as a by-product. First Quantum has chosen to monetize this secondary output through the streaming arrangement. Under such a deal, the buyer provides upfront financing in exchange for the right to purchase future production at favorable terms. In this case, deliveries will be tied to Kansanshi’s copper output.
Royal Gold will receive 75 ounces of gold for every one million pounds (about 453 tons) of copper produced until a total of 425,000 ounces is delivered. This will then fall to 55 ounces for the next 225,000 ounces, and finally to 45 ounces for the remainder of the agreement’s duration. Proceeds from the deliveries will be used to fund capital expenditures, working capital, and repay bank debt.
The company is making this move as gold prices continue to climb. Since January 2025, the price of gold has surged by around 30%, reaching a record high of about $3,500 per ounce. First Quantum is leveraging this favorable market to ease pressure from its $6.19 billion debt as of June 30. At the same time, the company is pressing ahead with a $1.25 billion expansion of Kansanshi’s copper operations, known as the S3 project, expected to be completed by year-end.
Despite the boost from gold monetization, First Quantum does not intend to rely solely on this funding route. It continues to monitor the debt capital markets for further financing opportunities. The company also operates the Sentinel copper mine in Zambia and has recently mentioned the potential sale of minority stakes in some of its assets.
Gold Fields Limited announced a significant increase in its earnings for the first half of 2025, driven by higher gold volumes sold and increased gold prices compared to the same period in 2024. The company reported a 203% to 236% rise in headline earnings per share and a 153% to 181% increase in basic earnings per share. The operational performance was bolstered by the ramp-up at Salares Norte and planned production increases at other mines. Despite increased costs due to mining inflation, Gold Fields remains on track to meet its 2025 production and cost guidance, with expectations for further production growth in the second half of the year.
The most recent analyst rating on (GFI) stock is a Hold with a $21.00 price target.
Spark’s Take on GFI Stock
According to Spark, TipRanks’ AI Analyst, GFI is a Outperform.
Gold Fields’ strong financial performance, highlighted by robust revenue growth, profitability, and efficient cash flow management, is the primary driver of the overall stock score. The positive technical analysis, with bullish momentum and price trends, further supports the score. Valuation metrics suggest the stock is fairly valued, with a reasonable P/E ratio and dividend yield contributing to a balanced outlook.
More about Gold Fields
Gold Fields is a globally diversified gold producer with nine operating mines located in Australia, South Africa, Ghana, Chile, and Peru, along with a project in Canada. The company is listed on the Johannesburg Stock Exchange and the New York Stock Exchange, and it reported a total attributable annual gold-equivalent production of 2.07 million ounces in 2024.
Average Trading Volume: 3,000,447
Technical Sentiment Signal: Buy
Current Market Cap: $22.81B
Ghana has ratified the renewal of gold mining company Newmont’s Akyem East mining lease, with Zijin Mining Group agreeing to pay Newmont $100 million upon receipt of the lease ratification. After-tax, the cash proceeds from the sale amount to approximately $770 million.
Newmont expects to generate $3.1 billion in after-tax cash proceeds from its divestiture programme this year, including $2.6 billion from divested assets and approximately $470 million from the sale of equity shares in Greatland Resources Limited and Discovery Silver Corp. The proceeds will support the company’s capital allocation priorities, which include reducing outstanding debt and returning capital to shareholders.
Akyem is an open-pit gold mine near the small town of New Abirem. Newmont applied for permits in July 2002, with development beginning in 2005 and commercial production starting in 2013. It is 2.65 km long and 900 m wide with a depth of 465 m.
Newmont owns two gold mines in Ghana, the other being Ahafo mine in the Ashanti Region. The company also produces copper, zinc, lead, and silver, with its portfolio of assets, prospects and talent anchored in favourable mining jurisdictions in Africa, Australia, Latin America and Caribbean, North America and Papua New Guinea.
https://www.miningreview.com/gold/newmont-unlocks-100m-in-akyem-lease-ratification/
BEIJING — Iron ore futures ticked down on Wednesday, as concerns of demand languishing in coming weeks in top consumer China and some investors liquidating positions to shift their focus to coking coal weighed.
The benchmark September iron ore on the Singapore Exchange slid 0.56 percent to $101.9 a metric ton, as of 0205 GMT.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was little changed at 795.5 yuan ($110.65) a ton.
Buying in the spot market is weak as mills are cautious about stockpiling raw materials ahead of the upcoming big event in September, dragging futures prices, said Cao Ying, a Beijing-based analyst at broker SDIC Futures.
The big event refers to a September 3 Beijing ceremony, commemorating the 80th anniversary of the end of World War Two.
Chinese steelmakers, especially those in the northern region, usually constrain production before big events to ensure air quality in Beijing.
“Speculative sentiment is also very poor as a large amount of capital flowed into the more volatile coal market,” SDIC’s Cao added.
Open interest for iron ore in Dalian fell by 4.2 percent from the day before on Tuesday while that for Dalian coking coal jumped by 13.7 percent.
Open interest tallies the number of options contracts that have yet to be settled between buyers and sellers, a measure of investors’ participation in a market.
Three analysts and two traders told Reuters that they have shifted their focus to trade coking coal.
Coking coal extended a price rally, up by 6.76 percent, underpinned by fears of supply contracting amid potentially more stringent safety checks for coal mines and government investigation for checking excess production, said analysts.
“The price fluctuation of coking coal has attracted more investors and capitals, which in turn aggravated the volatility,” said Zhou Tao, analyst at broker Galaxy Futures.
Coke rose 2.42 percent.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar and wire rod advanced 0.84 percent, hot-rolled coil added 0.64 percent and stainless steel nudged up 0.08 percent.
