Dalian iron ore futures dipped, deepening weekly losses as traders reassessed demand prospects in top steel producer China and exercised caution after market regulators repeatedly warned against excessive price speculation.
The steelmaking ingredient’s most-active May contract on China’s Dalian Commodity Exchange ended daytime trade 0.4 percent lower at 853.50 yuan ($126.52) a ton, after earlier hitting a fresh two-week low of 834 yuan. The contract has declined 1.2 percent so far in the week.
On the Singapore Exchange, benchmark March iron ore was headed for its first weekly fall this year, but up 0.8 percent at $125.10 a ton from Thursday, as of 0751 GMT.
“Whether the peak season of terminal demand can support the current price still needs further observation,” Sinosteel Futures analysts said in a note.
Iron ore and steel prices in China hit multi-month highs in January as markets rallied from November, underpinned by stepped-up policy support for the country’s ailing property sector and the dismantling of strict COVID-19 restrictions. – Reuters
