Iron ore futures fell amid profit-taking on Monday, with the Singapore benchmark retreating after eight straight sessions of gains and Dalian prices easing from a 10-week high.
The steelmaking ingredient’s most-active July contract on the Singapore Exchange slumped as much as 4.8 percent to $107.15 per metric ton. It was down 3.5 percent at $108.60.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended morning trading 1.3 percent lower at 789.50 yuan ($110.53) a ton.
Hopes of a broader, more substantial stimulus to support top steel producer China’s faltering economy had fueled iron ore’s rally starting late May.
Last week, China’s state-backed banks lowered the rates on yuan deposits, which analysts said could ease pressure on profit margins and reduce lending costs, and open the door for further monetary stimulus, including a cut in the reserve requirement ratio.
While traders continued to speculate about stimulus prospects in China, including additional support for the country’s struggling property sector, analysts said market fundamentals have not really changed much. – Reuters
