Dalian iron ore futures fell on Wednesday on rising shipments of the steelmaking ingredient from the world’s top suppliers, including Brazil, and weakening demand in top steel producer China ahead of the Lunar New Year holiday.
Iron ore on China’s Dalian Commodity Exchange dropped 1.7 percent to 940.50 yuan ($145.59) a ton, after a 3.3 percent slump in the previous session.
On the Singapore Exchange, iron ore rose 0.5 percent to $145.05 a ton, off a session high of $147.
Global iron ore supply had been tight since the 2019 tailings dam collapse at Vale SA’s Corrego do Feijao mine in Brazil, which prompted mine closures there for safety checks.
That had added to the upward pressure on prices last year, which were pushed higher mainly by China’s stimulus-driven demand for the raw material.
“Brazil is off to a good start in 2021 and we expect the country to regain some of the lost market shares this year,” said Erik Hedborg, iron ore analyst at CRU in London.
Brazil’s iron ore exports in January reached 29 million tons, compared with 26.7 million tons in the same month last year.