Iron ore retreats on China demand rethink, price curbs worry

The steelmaking ingredient’s most-active May contract on China’s Dalian Commodity Exchange ended daytime trade 0.4% lower at 853.50 yuan ($126.52) a tonne, after earlier hitting a fresh two-week low of 834 yuan.

The contract has declined 1.2% so far in the week. On the Singapore Exchange, benchmark March iron ore was headed for its first weekly fall this year, but up 0.8% at $125.10 a tonne from Thursday, as of 0751 GMT.

“Whether the peak season of terminal demand can support the current price still needs further observation,” Sinosteel Futures analysts said in a note.

Iron ore and steel prices in China hit multi-month highs in January as markets rallied from November, underpinned by stepped-up policy support for the country’s ailing property sector and the dismantling of strict COVID-19 restrictions.