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Iron ore retreats on China stimulus uncertainty, firmer supply potential customers

Iron ore futures retreated on Tuesday, snapping a twoday winning streak, as uncertainty surrounding leading consumer China's prepare for financial stimulus weighed on the marketplace while a stronger supply outlook even more forced prices.

The most-traded January iron ore agreement on China's Dalian Commodity Exchange (DCE) ended daytime trade 0.77%. lower at 777.5 yuan ($ 108.89) a metric ton.

The benchmark December iron ore on the Singapore. Exchange was 1.45% lower at $101.95 a heap, as of 0700 GMT.

Market belief is swinging with policy expectations, said. Chinese monetary info site Hexun Futures.

There is great policy unpredictability as the National Individuals's. Congress Standing Committee is scheduled to assemble in early. November, coinciding with the U.S. presidential election, Hexun. Futures said.

The Dalian agreement struck its highest in more than a week on. Monday, buoyed by renewed hopes of additional financial stimulus from. Beijing.

The China Iron and Steel Association's statement that it. would propose specific policies to improve the sector in the. face of weak demand supported the other day's gains in steel and. iron ore costs, ANZ experts said.

Imported iron ore prices in China taped gains on Oct. 28,. sustained by market optimism that Beijing's upcoming conference will. see additional stimulus policies revealed, said Chinese. consultancy Mysteel.

Although iron ore demand stays stable, the market deals with. the issue of peaking production and high supply, said Hexun. Futures.

The overall volume of iron ore shipped globally, from 19. ports and 16 mining companies in Australia and Brazil, leapt by. 1.7 million tons or 6.9% week-on-week to reach 26.3 million lots. during Oct. 21-27, Mysteel information revealed.

Other steelmaking active ingredients on the DCE drew back. even more, with coking coal and coke down 1.62%. and 0.56%, respectively.

Many standards on the Shanghai Futures Exchange were. weaker. Rebar shed 0.44%, hot-rolled coil. dropped 0.94%, stainless-steel declined 0.84%,. although wire rod advanced nearly 1.1%.

(source: Reuters)