Chinese commodity futures have slipped in early trade on Wednesday, giving back all of the gains and more achieved on Tuesday.
After closing Tuesday’s night session at 548.5 yuan, Dalian iron ore has gone into reverse, finishing morning trade at 534 yuan.
Rebar futures have also given back earlier gains, trading at 3,933 yuan, down from 3,955 yuan overnight.
On Tuesday, the spot price for benchmark 62% iron ore fines jumped 2.5% to $76.37 a tonne, according to Metal Bulletin, reflecting strong gains in futures seen earlier in the day.
Analysts said that a combination of steel restocking ahead of the autumn construction season in China, along with renewed demand for more efficient mid and high-grade iron ore from mills, drove the solid increase.
Seemingly those factors have abated as quickly as they arrived, at least in the first half of today’s session.