Iron ore is treading water as traders eye bigger events ahead

Photo by Lintao Zhang/Getty Images

Iron ore spot markets weakened slightly on Tuesday.

According to Metal Bulletin, the price for benchmark 62% fines fell 0.4% to 62.72 a tonne, snapping a three-day winning streak in the process.

Prices for higher and lower grades were largely static during the session.

The modest decline in the benchmark price followed a sharp decline in iron ore and rebar futures on Tuesday, reversing hard after several days of gains.

Rebar futures in Shanghai lost 1.91% to 3,740 yuan while iron ore futures in Dalian fell 1.63% to 453 yuan.

Both contracts finished well off their session lows, likely limiting the size of the decline in spot markets.

In overnight trade, futures finished mixed with iron ore climbing higher while rebar futures softened fractionally.

Here’s the overnight scoreboard.

SHFE Rebar ¥3,732 , -1.09%
DCE Iron Ore ¥461.50 , 1.10%
DCE Coking Coal ¥1,174.00 , 0.73%
DCE Coke ¥1,818.00 , -1.17%

The mixed performance from Tuesday’s day session close provides no real clue as to what direction spot markets will likely move today.

Trade in Chinese commodity futures will resume at midday AEDT.

China’s National People’s Congress is scheduled to begin today. Chinese GDP, industrial output and urban fixed asset investment figures will also be released on Thursday.

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