BEIJING- Benchmark iron ore futures in China fell over 7 percent on Thursday as market participants paused after a five-session rally that sent the steelmaking ingredient to historical highs over the past few days.
The most actively traded iron ore on the Dalian Commodity Exchange, for September delivery, was down 6.4 percent to 1,231 yuan ($190.76) a ton after declining 7.2 percent to 1,221 yuan earlier in the session.
Dalian iron ore prices have jumped 23 percent, or 248.5 yuan, so far in May as steel production curb worries, peak season demand and inflation concerns fuelled speculative buying.
“We do not see extreme tightness in the iron ore market, now or in the futures. We see little support for the price rising this high above the cost of the marginal producer in the market,” Erik Hedborg, an analyst with CRU, said in a note.
Other steelmaking ingredients also pulled back. Dalian coking coal declined 3.8 percent to 1,990 yuan a tonne and coke fell 2.9 percent to 2,758 yuan per ton. — Reuters
