Amid brisk trade, spot iron ore markets continued to soften on Wednesday, defying a surge in Chinese futures.
According to Metal Bulletin, the spot price for benchmark 62% fines fell by 0.26% to $56.48 a tonne.
It was the third loss in succession, and trimmed its gain in 2016 to 29.6%.
Metal Bulletin put the acceleration in deal-making down to the Golden Week holiday in China next week.
“We have seen a busier day in the iron ore spot market today with market participants looking to complete deals before next week’s holiday in China,” the group said. “Despite the rise in activity the spot market continues to move lower.”
While spot markets continued to soften, Chinese iron ore futures went the other direction. Go figure!
After rallying yesterday, the January 2017 future on the Dalian Commodities Exchange built upon those gains in overnight trade, closing the night session at 416.5 yuan, up 2.08%.
There were also solid gains recorded in rebar and coking coal futures, indicating that the strength in futures was linked to steel markets.
Trade in Chinese commodity futures will resume at 11am AEST. Spot pricing from Metal Bulletin will be released from 8.30pm AEST.