Iron ore futures slip on uncertainty

The most-traded iron ore for May delivery on China’s Dalian Commodity Exchange ended morning trade down 0.1% at 779 yuan ($111.58) a tonne, after a 0.2% drop in the previous session.

The benchmark Dalian contract has risen about 10% this quarter as recent gains spurred by top steel producer China’s ramped-up policy support for ailing domestic property developers and easing of its Covid restrictions offset losses from the sell-off in October. On the Singapore Exchange, the steelmaking ingredient’s front-month January contract was down 0.2% at $107.95 a tonne, as of 0414 GMT. However, it was about 40% up from its end-October level.

China-bound iron ore’s spot prices have also rebounded strongly, rising to a four-month high of $110 a tonne on Tuesday, based on SteelHome consultancy data.

“The recently-announced support measures for the property market in China suggests the worst is behind us for bulk commodity markets,” ANZ commodity strategists said in a note.