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Iron ore prices fall amid volatile geopolitical environment

Iron ore futures dipped as traders were cautious in the face of a tepid global political backdrop. However, recovering hot metal production and increasing inventories indicate that prices have more room to grow.

As of 0312 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange (DCE), traded 0.51% higher at 788 Yuan ($113.29).

The benchmark iron ore for February on the Singapore Exchange fell by 0.93% to $103.6 tonne.

A?trader with knowledge of the issue said that traders are generally cautious in a geopolitical climate where prices for Singapore iron ore remain below $100 per ton.

A Mysteel report published on January 26 said that prices would remain low due to the recovering hot metal production and Chinese Lunar New Year stocking.

The report stated that iron ore inventories at steel mills were still lower than the same period of 'previous years.

BHP Group, world's No. BHP Group, the world's No.

Two traders reported that the stocks of BHP's Jimblebar Fines in major Chinese ports had risen 360% since late September, to 8.1 millions tons on January 13.

Sources claim that Chinese steelmakers cannot take delivery of JMBF cargoes at ports.

Steelhome's data from January 23 shows that iron ore inventories at major Chinese ports increased by 1.2% in a week.

Coking coal and coke, which are both steelmaking ingredients, were mixed on the DCE.

The benchmarks for steel on the Shanghai Futures Exchange have firmed. The price of rebar increased by 0.38%. Hot-rolled coils gained 0.27%. Wire rods hardened 0.89%. Stainless steel rose 0.38%. ($1 = 6.9554 Yuan) (Reporting and editing by Rashmi aich; Ruth Chai)

(source: Reuters)