Iron ore futures retreated on Thursday after a four-session rally as investors booked profits on fears of potential government intervention in top consumer China, with prices nearing the key psychological level of $110 per metric ton.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade down 0.37% at 813 yuan ($116.42) a ton after touching 831.5 yuan earlier in the session, the highest since July 22, 2025.

The benchmark February iron ore (SZZFG6) on the Singapore Exchange fell 1.05% to $107.9 a ton by 0715 GMT, after hitting its highest since September 30, 2024 at $109.4.

The price rally was spurred by hopes of improving demand in China after its central bank pledged to ease monetary policy.

However, the sharp rise in prices has made investors cautious amid fears that Beijing could intervene to rein in prices as it did in 2023.

Some steel mills also held back from purchasing cargoes amid higher prices, said analysts.

The transaction volume of iron ore at major ports in China fell by 54.9% on Wednesday compared to a day earlier, per data from consultancy Mysteel.

Additionally, base metals copper and nickel retreated from their highs on Wednesday, weighing on overall sentiment for metals.

Other steelmaking ingredients on the DCE continued to rally, with coking coal and coke (DCJcv1) up 4.75% and 2.56%, respectively. Several major Chinese coke producers mulled a production cut of 15%-35%, citing severe losses at a meeting on Wednesday, according to consultancy Steelhome and two analysts familiar with the matter.

Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar strengthened 0.44%, hot-rolled coil gained 0.48%, wire rod (SWRcv1) shed 0.48% and stainless steel lost 1.13%.
Source: Reuters