MANILA: Iron ore futures in Singapore retreated on Monday after a four-session rally, following China’s renewed adherence to a strict COVID-containment approach, but the steelmaking ingredient’s contracts on the Dalian Commodity Exchange stretched gains.
Top steel producer China reported its highest number of new infections in six months on Sunday, a day after health officials said they were sticking with strict coronavirus curbs.
Iron ore rallied relentlessly last week despite Chinese authorities saying the nation should unwaveringly stick to the zero-COVID policy and denying knowledge of a rumoured plan for border reopening by next year.
Benchmark December iron ore on the Singapore Exchange was down 1.6% at $84.60 a tonne, as of 0340 GMT, after a weekly rise of more than 8%. But the Dalian exchange’s most-traded January iron ore ended morning trade 1.5% higher at 658 yuan ($91.22) a tonne, up for a fifth session.