BEIJING: Iron ore futures retreated on Tuesday, as investors booked profits after focus shifted back to expectations of growing ore supply in the rest of 2025, while steel demand in top consumer China seasonally slows.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) fell 1.82 percent to 784 yuan (USD109.90) a metric ton, as of 0331 GMT. It hit its highest level since September 23 at 809.5 yuan earlier in the session.
The benchmark November iron ore on the Singapore Exchange declined 2.08 percent to USD105.55 a ton, as of 0321 GMT, after touching its highest level since February 25 at USD108.05 earlier. The world’s largest iron ore supplier Rio Tinto, said on Tuesday it needs a strong year-end finish to meet its iron ore shipment target.
The price rally late on Monday was driven by an overreaction to the potential increase in ore transportation costs amid the port fees which in reality will have very limited impact, said Chu Xinli, an analyst at broker China Futures.
“Therefore, it needs to be repriced today, which partly contributed to a downward correction.” The United States and China on Tuesday will begin charging port fees on ocean shipping firms that move everything from holiday toys to crude oil, making the high seas a key front in the trade war between the world’s two largest economies. Looming headwinds of rising supply and weak demand propelled investors to liquidate some long positions to cash in profits, triggering a price collapse, said analysts. Coking coal and coke, other steelmaking ingredients, slipped by 0.83 percent and 0.82 percent, respectively.
Steel benchmarks on the Shanghai Futures Exchange were broadly lower. Rebar shed 1 percent, hot-rolled coil and wire rod lost 0.95 percent, and stainless steel dipped 0.99 percent.
Comments
Comments are closed for this article.