BEIJING: Prices of iron ore futures slipped on Monday as caution over US tariffs and China’s pledge to cut crude steel output this year clouded demand prospects.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) erased earlier gains to end daytime trade 0.71% lower at 769 yuan ($105.92) a metric ton.
The benchmark April iron ore on the Singapore Exchange fell below the key psychological level of $100 to $99.8 a ton as of 0735 GMT. Prices pared earlier gains as investors, hoping to see more supportive measures from Beijing following the latest disappointing inflation data, calmed.
China’s consumer price index in February missed expectations and fell at the sharpest pace in 13 months while producer price deflation persisted, raising hopes of more stimulus from China to achieve its annual economic growth target this year. However, the upcoming 25% tariffs on all steel imported into the US clouded demand prospects and weighed on sentiment.
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