The futures contracts iron ore fell on Tuesday, with the benchmark price on the Dalian bourse retreating from the previous session’s contract high, as traders assessed demand in the Chinathe world’s largest producer of steeland monitored regulatory risks.
The steelmaking ingredient, however, was on course for a 2% monthly gain on the Dalian Commodity Exchange.
On the Singapore Exchange, the contract rose 11% this month, in a rally driven by better demand prospects after China dismantled rigid restrictions on the Covid.
China’s so-called reopening has also boosted spot iron ore prices, with the 62% iron ore rising above $130 a tonne on Monday, the highest level since June, data from consultancy SteelHome showed. This Tuesday, the contract closed at $129.5.
THE iron ore traded for May on the Dalian exchange ended Tuesday’s day trade down 1.3% at 866 yuan ($128.25) a tonne.
In Singapore, the benchmark iron ore contract for March fell 0.7% to $127.25 a tonne.
“Iron ore prices may remain within range when steel mills resume production after the CNY (Lunar New Year) break,” consultancy Mysteel said in its latest weekly outlook.
Inventories at China’s iron ore ports are also likely to have built up after the week-long holiday, he says.
Concerns about regulatory intervention, as China warned against excessive market speculation, were also seen driving down iron ore prices.
Source: Moneytimes
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