Iron ore spot markets weakened on Monday, giving back ground after surging higher on Friday.
According to Metal Bulletin, the price for benchmark 62% fines fell 0.8% to $68.82 a tonne, partially reversing Friday’s 5.6% gain.
Both lower and higher grades lost ground for the session, especially in the latter.
58% fines fell 0.4% to $38.98 a tonne, outpaced by a 1.5% decline in ore with 65% Fe content which closed at $85.90 a tonne.
The weakness in spot markets followed a reversal in Chinese futures earlier in the session.
The May 2018 contract fell 0.5% to 495.5 yuan a tonne, well below the high of 520 yuan struck in early trade. Rebar futures in Shanghai also softened, finishing at 3,912 yuan a tonne, below the 3,924 yuan level it closed Friday’s night session.
However, as seen in the scoreboard below, those moves were once again reversed in overnight trade, continuing the choppy price action that is now the norm rather than the exception.
SHFE Rebar ¥3,937 , 0.51%
DCE Iron Ore ¥513.00 , 0.98%
DCE Coking Coal ¥1,293.50 , 1.17%
DCE Coke ¥2,139.00 , 2.10%
Trade in Chinese commodity futures will resume at midday AEDT.
Should iron ore and rebar futures managed to hold or build upon the overnight gains, it points to the likelihood that spot markets will follow suit on Tuesday.