BEIJING- Iron ore futures prices ticked down on Monday, weighed down by diminishing hopes of more stimulus in top consumer China, high portside stocks, and risks of possible government intervention after a price rally last week.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.52 percent lower at 862.5 yuan ($119.08) a metric ton, following a rise of more than 5 percent last week.
The benchmark May iron ore on the Singapore Exchange was 0.6 percent lower at $115.75 a ton.
Iron ore prices will likely consolidate in the near term as uncertainty lingers on how much hot metal output can rise further, analysts at Everbright Futures said in a note.
“The main driving force behind a price rebound last week was the macroeconomic factor and marginally improved fundamentals,” they said, referring to improved steel margins and market confidence and continuous destocking of steel products, among others.
China left benchmark lending rates unchanged at a monthly fixing, in line with market expectations, as better-than-expected first-quarter economic data removed the urgency for Beijing to unveil fresh monetary stimulus to aid the economic recovery.
Iron ore stocks at major ports surveyed climbed by 0.5 percent week-on-week to 145.59 million tons as of April 19, data from consultancy Mysteel showed.
