BEIJING- Iron ore futures retreated on Wednesday as investors became wary of possible downside risks after stimulus announced a day before during an agenda-setting meeting of policymakers in top consumer China undershot expectations.
The benchmark January iron ore on the Singapore Exchange slid 1.37 percent to $134.25 a metric ton.
The most-traded May iron ore on China’s Dalian Commodity Exchange (DCE) dipped 0.1 percent to 960 yuan ($133.64) a ton.
“China’s leaders disappointed the market without any calls for large stimulus measures,” analysts at ANZ bank said in a note.
The country will step up policy adjustments to support an economic recovery in 2024, state media said, citing the annual Central Economic Work Conference held from Dec. 11-12.
“It’s normal to see a downward price correction, as the last flurry of price rallies was mainly driven by strong expectation of macroeconomic stimulus,” said Chu Xinli, a Shanghai-based analyst at China Futures.
Steelmakers preferred to purchase portside cargoes on a hand-to-mouth basis instead of placing orders for the expensive seaborne cargoes amid thin margins, said Pei Hao, a Shanghai-based analyst at international brokerage FIS.
