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China's inflation figures are weak and iron ore prices have fallen due to profit-taking

The iron ore futures fell on Wednesday due to profit-taking, and lower-than-expected data for inflation in China, the top consumer. However, bets that demand would pick up, along with a resumption of production among mills, helped limit losses.

As of 0913 GMT, the benchmark October iron ore traded on the Singapore Exchange had fallen 0.33% to $107 per metric ton after reaching its highest level since 25 February at $107.65.

The January contract for iron ore on China's Dalian Commodity Exchange closed daytime trading 0.25% higher, at 805 Yuan ($113.03), after reaching its highest level since July 25, at 814 Yuan.

Steven Yu, senior analyst at Mysteel, explained that traders have been liquidating some long positions in order to cash in on profits. This has led to a softening of prices.

It's not easy to predict the direction of the market and prices were largely driven by expectations. Therefore, it is normal to see a downward correction after a price rally.

China's consumer price index in August was down 0.4% compared to a year ago, which missed the poll prediction of a drop of 0.2%, and weighed on sentiment.

The Brazilian miner Vale announced on Tuesday that the fire at its maritime terminal Ponta da Madeira, which had damaged an auxiliary tower, was put out.

The fire had no impact on the miner's schedule of iron ore shipments, nor on the volume of steelmaking materials it expected to ship.

Ore demand is expected to increase after Chinese steelmakers resume production following the military parade in Beijing. This will limit price losses.

Coke and other steelmaking materials, such as coking coal, fell by 1.93% and 0.7% respectively.

The benchmarks for steel on the Shanghai Futures Exchange have fallen. The price of rebar fell 0.73%. Hot-rolled coil dropped 0.39%. Wire rod was down 0.3%. Stainless steel declined 0.12%. ($1 = 7,1218 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)

(source: Reuters)