Widnell said an increase of 1.88 million tonnes in iron ore
shipments to China from Australia and Brazil last week could
also weighed on prices.
Other Dalian steelmaking inputs also dropped, with
coking coal and coke down 0.1% and 0.8%,
respectively.
Rebar on the Shanghai Futures Exchange slipped
0.6%, hot-rolled coil dipped 0.2%, and wire rod shed 0.5%. Stainless steel edged up 0.4%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Nivedita
Bhattacharjee)
By Enrico Dela Cruz
Feb 6 (Reuters) - Dalian and Singapore iron ore futures
fell on Monday, hovering around their lowest in more than two
weeks, as traders curbed their optimism about demand prospects
in top steel producer China.
Caution over regulatory risks prevailed, with Chinese
authorities having warned against excessive speculation on iron
ore prices following the steelmaking ingredient's recent rally
underpinned by China's reopening and property sector support
measures.
The most-traded iron ore, for May delivery, on China's
Dalian Commodity Exchange fell as much as 1.2% to 836
yuan ($123.30) a tonne, declining for a fifth straight session.
On the Singapore Exchange, iron ore's benchmark March
contract slumped 3% to $121.15 a tonne, its weakest
since Jan. 18.
In the spot market, the 62% Fe ore bound for China was
assessed at $127 a tonne on Friday, based on SteelHome
consultancy data . The benchmark grade hit its
highest since mid-June at $130.50 on Jan. 30.
"We expect to witness some immediate downside for iron ore
prices this coming week, as supply- and demand-side fundamentals
temporarily loosen," Navigate Commodities Managing Director
Atilla Widnell said.
Steel demand in China has yet to pick up after the Lunar New
Year holidays, partly indicated by rising inventories, analysts
said.
Traders were seen waiting for signals of further policy
support for the Chinese economy. However, China's policymakers
have ruled out flood-like stimulus even as they plan to show
more support for domestic demand this year.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.