- After rallying in each of the prior four sessions, iron ore spot prices fell on Wednesday.
- Optimism over US-Sino trade negotiations continues to underpin confidence across the commodities complex.
- Chinese bulk commodity and steel futures inched higher in overnight trade.
Iron ore’s latest winning streak came to an end on Wednesday with modest declines recorded across all major grades.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 0.8% to $73.90 a tonne, logging its first decline since January 2.
After surging to the highest level in over a year on Tuesday, the price for 58% fines also slipped, falling 0.2% to settle at $47.52 a tonne.
65% Brazilian fines completed the hat-trick of losses, declining 0.6% to $88.10 a tonne.
The slide in spot markets followed another quiet session for Chinese steel and bulk commodity futures on Tuesday.
Hot-rolled coil and rebar futures were mixed — the former rising marginally from Tuesday’s night session close while the latter slipped fractionally after climbing earlier in the session.
Bulk commodity contracts all closed lower with iron ore, coking coal and coke futures finishing at 509.5, 1,187.5 and 1946 yuan a tonne respectively.
However, continuing the choppy price action seen earlier in the week, all five contracts edged higher in overnight trade on Wednesday.
SHFE Hot Rolled Coil ¥3,425 , 0.03%
SHFE Rebar ¥3,528 , 0.11%
DCE Iron Ore ¥510.00 , -0.49%
DCE Coking Coal ¥1,194.50 , 0.29%
DCE Coke ¥1,953.50 , -0.41%
As has been the case for other cyclical assets, optimism over trade negotiations between the US and China has helped to underpin gains across the commodity complex this week.
Trade in Chinese commodity futures will resume at midday AEDT.
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