By Enrico Dela Cruz
(Reuters) – Iron ore futures fell on Tuesday, with the benchmark price on the Dalian Exchange retreating from the previous session’s contract high, as traders weighed demand in China, the world’s biggest steel producer. , and 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 strict Covid restrictions.
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 dollars.
The most traded iron ore 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.
(By Enrico Dela Cruz in Manila)
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