Iron ore retreats after four-day rally as investors book profits

SINGAPORE: Iron ore futures retreated on Thursday after a four-session rally, as investors booked profits on fears of potential government intervention in top consumer China, with prices nearing the key psychological level of $110 per metric ton.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade flat at 816 yuan ($116.80) a metric ton after touching 831.5 yuan earlier in the session, the highest since July 22, 2025.

The benchmark February iron ore on the Singapore Exchange fell 0.78% to $108.2 a ton by 0349 GMT, after hitting its highest since September 30, 2024 at $109.4.

The persistent price rally was spurred by hopes of improving demand in top consumer China after its central bank pledged to ease monetary policy.

However, the sharp rise in prices has made investors cautious, amid fears that Beijing could intervene to rein in prices as it did in 2023.

Some steel mills also held back from purchasing cargoes amid higher prices, said analysts.

The transaction volume of iron ore at major ports in China on Wednesday fell by 54.9% compared to a day earlier, per data from consultancy Mysteel.

Additionally, base metals copper and nickel retreated from their highs on Wednesday, curbing overall market sentiment for metals. Other steelmaking ingredients on the DCE continued further rally, with coking coal and coke up 5.55% and 2.47%, respectively. Several major Chinese coke producers mulled a production cut of 15%-35%, citing severe losses at a meeting on Wednesday, according to consultancy Steelhome and two analysts familiar with the matter, who requested anonymity as they are not authorised to speak to the media.

Steel benchmarks on the Shanghai Futures Exchange were mixed.

Rebar strengthened 0.63%, hot-rolled coil gained 0.51%, wire rod shed 0.65% and stainless steel lost 0.29%.