Iron ore’s rally stalled on Thursday amidst a sharp slowdown in trading activity.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by three cents to $64.04 a tonne, trimming its gain this week to 7.35%.
Lower grade ore came under greater selling pressure with the price for 58% fines sliding 54 cents to $47.28 a tonne.
“Trading was very thin during the day in the spot market with rebar futures falling for a second day, along with other ferrous contracts,” said Metal Bulletin.
“Buyers stopped procuring materials on expectations of a price drop, but traders are holding off from cutting prices having incurred a high cost to build up their inventories.”
A standoff of sorts, preventing market activity during the session.
Indicating that buyers may have to move to meet sellers, Chinese iron ore futures pushed modestly higher in overnight trade.
The January 2017 contract on the Dalian Commodities Exchange last traded at 480.5 yuan, up 0.95% for the session. Coking futures also added 0.33%, despite a decline in rebar futures which fell 0.16%.
Trade in Chinese commodity futures will resume at midday AEDT.
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