Iron ore spot markets weakened across the board on Friday.
According to Metal Bulletin, the price for benchmark 62% fines fell 0.85% to $74.40 a tonne, reversing sharply having increased 0.7% a day earlier.
The weakness in the benchmark was replicated across the board.
58% fines slumped 2% to $41.03 a tonne while ore with 65% Fe content fell by a smaller 0.8%, settling at $90.10 a tonne.
Analysts put the reversal down seasonal weakness in Chinese steel demand, continuing the choppy price action seen in recent weeks.
“Snows hit more regions in China this week and physical demand has remained weak. Prices could keep fluctuating within a narrow range before spring,” a steel trader in Shanghai told Reuters.
Rebar futures in Shanghai ended the session down 0.3% at 3,945 yuan a tonne, trimming its weekly advance to 1.7%. That weighed on iron ore futures traded separately in Dalian which closed down 1.5% at 519 yuan a tonne.
As seen in the scoreboard below, there was very little movement on those levels in overnight trade on Friday.
SHFE Rebar ¥3,945 , -0.08%
DCE Iron Ore ¥517.00 , -0.86%
DCE Coking Coal ¥1,287.00 , -1.79%
DCE Coke ¥2,032.00 , -0.83%
Given the lack of movement, it provides few clues as to what direction iron ore spot markets may move today.
Trade in all Chinese commodity futures contracts will resume at midday AEDT.