BEIJING- Iron ore futures prices slipped on Wednesday, as supply concerns eased and demand slowed marginally due to maintenance of more furnaces by steelmakers in top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) was 1.69 percent lower at 786 yuan ($107.90) a metric ton.
It touched the lowest level since Nov. 28 at 783 yuan earlier in the session.
The benchmark January iron ore on the Singapore Exchange lost 0.61 percent to $103.9 a ton.
one of the world’s leading iron ore suppliers, resumed operations at two mines in Western Australia after a pause due to heavy rains, alleviating supply worries.
“The ore price movement reflects pricing in of eased supply worries following the news,” said Pei Hao, an analyst at international brokerage Freight Investor Services (FIS).
Iron ore also came under pressure from thinning steel margins and environmental protection requirements, analysts at Galaxy Futures said in a note.
Prices are expected to move between $100 and $110 a ton factoring in winter restocking demand among steelmakers, analysts at Huatai Futures said.
Analysts at Macquarie said 33 percent of surveyed mills plan to increase purchases of iron ore over the next month, versus 28 percent earlier.
