SINGAPORE: Dalian iron ore futures declined on Tuesday amid lingering fears of China’s intervention, though analysts cautioned that the downward trend may be short-lived.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange fell 0.6% to 964 yuan ($134.90) per metric ton as of 0300 GMT. On the Singapore Exchange, the benchmark January iron ore snapped a three-day rally and fell 0.7% to $128.05 a metric ton. State-backed Dalian Exchange announced on Nov. 30 its commitment to enhancing supervision of the iron ore market for the safe and stable market operation.
This came after the announcement on Nov. 24 that China will reinforce oversight and curb a price rally.
“What we have seen from the playbook in recent years from high-frequency announcements by Chinese authorities on elevated iron ore prices is that they tend to lose their effect after a while,” said Atilla Widnell, managing director at Navigate Commodities.
Source: Brecorder
