Iron ore falls in session before the holiday, but is heading for a strong monthly increase

The most traded iron ore on the Dalian exchange fell 0.5% to 870.50 yuan ($120.19) per metric ton. Still, it rose 16.2% this month

(Reuters) – Iron ore and steel futures fell on Tuesday amid risk-on sentiment ahead of a holiday in China, but most maturities are expected to post a monthly gain due to the improved demand outlook for China. real estate sector.

The most traded iron ore on the Dalian exchange fell 0.5% to 870.50 yuan ($120.19) per metric ton. Still, it rose 16.2% this month, on track for the biggest monthly increase since June 2023.

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Markets in China, the world’s biggest steel consumer, will be closed for a national holiday from May 1-3.

“Today is just a little risk-on ahead of the holidays, which is very normal for a pullback in ferrous,” said one trader.

The outlook for the ferrous sector is neutral to slightly bullish given China’s latest move to increase infrastructure spending, the trader said, adding that the continued expansion of manufacturing activity also provided some support.