Worries about regulatory intervention as China has warned
against excessive market speculation were also seen curbing iron
ore prices.
"The risk of price regulation still exists," analysts at
Zhongzhou Futures said in a note.
Other Dalian steelmaking inputs were also under pressure,
with coking coal falling as much as 4%, and coke shedding 2.6%.
China is set to receive at least two cargoes of Australian
coal in early February, according to traders and shiptracking
data, the first since an unofficial ban on imports in place
since 2020 was lifted earlier this month.
Rebar on the Shanghai Futures Exchange dropped
1.7%, hot-rolled coil slumped 2%, and wire rod dipped 0.7%. Stainless steel climbed 0.8%.
(Reporting by Enrico Dela Cruz in Manila; editing by
Uttaresh.V)
By Enrico Dela Cruz
Jan 31 (Reuters) - Iron ore futures slipped on Tuesday,
with the Dalian benchmark price pulling back from the previous
session's contract high, as traders assessed demand in top steel
producer China while also keeping an eye on regulatory risks.
The steelmaking ingredient, however, was on track for a 2%
monthly gain in the Dalian Commodity Exchange, and has risen 11%
on the Singapore Exchange this month, extending a rally driven
by improved demand prospects after China dismantled strict
COVID-19 curbs.
The so-called China reopening has also boosted spot iron
prices, with the benchmark 62%-grade material hitting the
highest since June on Monday above $130 a tonne, SteelHome
consultancy data showed. The most-traded May iron ore on the Dalian exchange was down 0.6% at 872 yuan ($129.09) a tonne, as of
0544 GMT.
SGX iron ore's benchmark March contract shed 0.9%
to $127 a tonne.
"Iron ore prices may stay range-bound when steel mills
resume production after the CNY (Lunar New Year) break,"
industry consultancy and data provider Mysteel said in its
latest weekly outlook.
Iron ore port stocks in China also likely accumulated after
the week-long holiday, it said.
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