China’s benchmark iron ore futures fell for a fourth straight session on Thursday, falling more than 5% and impacting steel prices as investors were still worried about the interventions. government in the market.
The country’s state planner has asked some iron ore traders to release excess inventories and restore stockpiles to reasonable levels, it said after a joint investigation with the market regulator in Qingdao.
Port inventories of imported iron ore in China were at 156.35 million tonnes on Feb 11, hovering around three-year highs, data from consultancy SteelHome showed.
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“The earlier rise in iron ore prices was more related to expectation and had little to do with fundamentals,” analysts at GF Futures wrote in a note, adding that steelmaking raw material is pressured by policy.
The most traded iron ore futures on the Dalian commodity exchange DCIOcv1, for May delivery, fell 5.2% to 675 yuan ($106.62) a tonne. They closed down 3.8% to 685 yuan a tonne.
Steel products on the Shanghai Stock Exchange were also hurt by falling raw material prices.
SRBcv1 construction steel rebar fell 2% to RMB 4,686 per tonne, and SHHCcv1 hot rolled coil used in the manufacturing sector fell 1.5% to RMB 4,823 per tonne.
Shanghai SHSScv1 stainless steel futures for March delivery fell 2.1% to RMB 18,720 a tonne.
Dalian DJMcv1 metallurgical coal futures rose 1.1% to 2,439 yuan a tonne. DCJcv1 coke prices jumped 1.5% to RMB 3,210 per tonne.