Chinese iron ore futures lost some ground in overnight trade, pulling back from a four-month high struck earlier in the session.
According to pricing from the Dalian Commodities Exchange, the most actively traded May 2018 contract finished Tuesday’s night session at 555.5 yuan a tonne, below the 560.5 level where it closed Tuesday’s day session.
It briefly hit 562.5 yuan tonne — the highest level since September 13 — on the back of continued efforts from Chinese regulators to reduce steel production capacity.
The modest reversal in iron ore futures coincided with renewed weakness in Chinese rebar futures.
The May 2018 rebar contract finished overnight trade at 3809 yuan a tonne, according to the Shanghai Futures Exchange, pulling back from Tuesday’s day session close of 3,819 yuan a tonne.
That also acted to weaken coking coal and coke contracts traded on the Dalian Commodities Exchange.
Steel prices in China have come under renewed selling pressure recently despite inventory levels sitting near record lows, undermined by freezing weather in many Chinese provinces, curtailing construction demand.
Trade in Chinese commodity contracts will resume at midday AEDT.
Here’s the final scoreboard from Tuesday’s night session.
SHFE Rebar ¥3,809 , -0.39%
DCE Iron Ore ¥555.50 , -0.45%
DCE Coking Coal ¥1,367.00 , -1.23%
DCE Coke ¥2,025.50 , -2.60%