China's iron ore and steel futures eased on February 12 after surging to their highest levels in multiple months in the previous session, as speculators tended to sell positions amid concerns over trade talks between Beijing and Washington.
The most-active iron ore futures on the Dalian Commodity Exchange dipped 0.3% to 649 yuan/t ($95.61/t). It reached a daily-trading limit of 8% to a record high of 652 yuan/t on February 11.
''It is not surprising that iron ore prices will pull back as some traders want to secure gains and wait to see the next move in the market,'' said a Shanghai-based trader.
The volatile iron ore prices came as an estimated 70 million tonnes of iron ore output cut at the world's largest miner of the mineral, Vale SA, after a dam collapse in Brazil last month that killed at least 165 people.
''The consensus view was that the net impact (of the accident) on iron ore supply would be limited and short-term. Conversely, our view has been that the impact would be significant and longer term,'' Jefferies analyst Christopher LaFemina wrote in a note.
Meanwhile, the world's two largest economies have begun a new round of talks this week at an aim to hammer out a deal before a March 1 deadline, after which US tariffs on $200 billion worth of Chinese imports are scheduled to increase to 25% from 10%.
However, a US Navy mission through the disputed South China Sea cast a shadow over the negotiations in Beijing.
''It is hard to predict if ferrous prices would bounce back as there remain many uncertainties from the fundamental sectors,'' said the Shanghai trader.
Benchmark Shanghai construction steel prices also retreated on February 12 following the falling iron ore prices. It lost 1.8% to 3,786 yuan/t during early trade.
Hot-rolled coil, a flat steel, fell 1.8% to 3,678 yuan/t.
Steelmaking raw ingredient coking coal on the Dalian Commodity Exchange inched up 0.8% to 1,291.5 yuan/t, while coke futures dropped 1% to 2,104 yuan/t.
Source:sxcoal
Please Contact Us at：
admin@xindemarine.com
.gif)
