Iron ore price retreats amid concerns of policy risks in China

The iron ore price retreated on Tuesday as investors continued to worry about policy uncertainties amid China’s government intervention.

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $135.78 a tonne during morning trading, down 1.4% compared to Monday’s closing.

The most-active iron ore futures on the Dalian Commodity Exchange, for May delivery, edged down 0.1% to 685 yuan ($108.04) per tonne at close. They were up as much as 4.9% to 719 yuan a tonne earlier during the session.

“Iron ore is now caught between two opposing policies in China,” Commonwealth Bank of Australia commodity analyst Vivek Dhar said in a note.