Benchmark iron ore futures in Asia fell on Wednesday, with the key Dalian contract extending losses to a second session, as reduced profitability at Chinese steel mills following a recent rally in prices of steelmaking ingredients weighed on sentiment.
The most-traded iron ore for September delivery on China’s Dalian Commodity Exchange ended daytime trading 0.5% lower at 926.50 yuan ($138.85) a tonne.
On the Singapore Exchange, the most-active July iron ore contract was down 0.2% at $144.30 a tonne, as of 0702 GMT.
A rally that began in late May had propelled Dalian iron ore to a 10-month high on Monday, while the SGX contract hit its highest in nearly five weeks on Tuesday, underpinned by renewed optimism around demand in top steel producer China.
Worries about shrinking stocks of imported iron ore at Chinese ports had added fuel to that rally.
But costlier iron ore and other steelmaking inputs mean reduced profits for steelmakers…