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Iron ore prices fall amid volatile geopolitical environment

Iron ore prices fall amid volatile geopolitical environment
Iron ore prices fall amid volatile geopolitical environment

Iron ore futures fell on Monday, as traders were cautious in the face of a tepid global geopolitical environment. However, rising inventories and recovering hot metal production suggest that prices have more room to rise.

The 'May' iron ore contract most traded on China’s Dalian Commodity Exchange was 0.95% lower, at 784.5 Yuan ($112.77) per metric ton.

As of 0708 GMT, the benchmark February iron ore traded on Singapore Exchange was $103.35 per ton lower.

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

A report by Mysteel, released on January 26, said that prices would'remain tepid due to recovering hot metal production and Chinese Lunar New Year stocking.

The report stated that iron ore inventories at steel mills were?still lower? than in the same period of previous years. It is expected that the current rate for inventory growth will continue.

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 both increased by 1.35% and 0.444% respectively.

The Shanghai Futures Exchange steel benchmarks mainly firmed. Rebar gained 0.29%; hot-rolled coils gained 0.12%; and wire rod hardened by 0.81%. While stainless steel fell 0.14%.

(source: Reuters)