Iron ore isn't doing very much right now

CARL COURT/AFP/Getty Images

Chinese iron ore futures continue to tread water, consolidating upon the gains achieved in the first week of the year.

According to the Dalian Commodities Exchange, the May 2018 iron ore contract closed Wednesday’s night session at 557.5 yuan a tonne, the exact same level it closed Wednesday’s day session.

It briefly hit a high of 565 yuan a tonne during the day session — the highest level since September 4 — before paring gains in the latter parts of trade.

Even with the modest reversal, the contract is still up over 32% from early October.

The lacklustre session came despite modest strength in rebar futures traded on the Shanghai Futures Exchange.

The May 2018 rebar contract closed overnight trade at 3864 yuan a tonne, above Wednesday’s day session close of 3,849 yuan a tonne.

Analysts put the continued gains down to optimism that ongoing attempts from Chinese regulators to remove steel production capacity will lead to higher steel prices.

Despite the strength in steel prices, like iron ore, coking coal and coke contracts also reversed on Wednesday, finishing trade nursing losses of over 2%.

Trade in Chinese commodity futures will resume at midday AEDT.

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