* Dalian iron ore fell 11% from the highest level hit Monday
* SGX iron ore falls 1.9%, adding 6.2% decline Tuesday (Prices updated, adds graphics)
MANILA, Dec 23 (Reuters) – Iron ore futures fell on Wednesday as changes in trade rules in China and concerns about a new COVID-19 strain sparked profits, after steel raw material prices plummeted. going up multi-year highs early in the week. .
The Dalian market regulator has stepped up efforts to halt a trading situation in the hottest area this year, which has more than doubled in value driven in part by speculative inflow of cash inflows.
The trade cap imposed this month on the world’s most liquid iron ore futures “partially undermines the commitment to hot currency trading”, Sinosteel Futures analysts said in an nota.
Iron ore on the Dalian Commodity Exchange ended intraday trading 5.8% lower at 1,026.50 Yuan ($ 156.95) per tonne, after falling earlier as much as 9.1%. It fell 11% from a contract high of 1,147 Yuan that was struck on Monday.
Iron ore on the Singapore Exchange fell 1.9% to $ 161.10 per tonne before 0712 GMT, extending losses after falling 6.2% in the previous session.
Sentiment also received a blow from borderline restrictions after a more volatile coronavirus variant was discovered, Sinosteel analysts said.
However, the outlook for iron ore prices in 2021 remains largely high, supported by China’s leading economically stimulated steel producer and tight supply from Brazil.
“While the (price) hike should disappear after the Lunar New Year, the growing underlying support has led us to refresh our forecast image,” said Westpac chief economist Justin Smirk, priced at $ 130 per ton by March 2021, compared to $ 105 previously. .
Spot iron ore in China traded at $ 168 per tonne Tuesday, according to SteelHome advisory data. SH-CCN-IRNOR62
Rebar on the Shanghai Futures Exchange fell 4.1%, hot rolled coil fell 3.7%, and stainless steel slipped 2.5%.
Dalian cooking coal fell 1.2% and coke fell 2%.
Reciting with Enrico Dela Cruz; Edited by Subhranshu Sahu