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Iron Ore Falls as Inventories Rise Despite China’s Stimulus Push

Iron ore falls onto stockpiles at the Fortescue Metals Group Ltd. Cloudbreak mine in the Pilbara region of Western Australia, Australia, on Tuesday, Oct. 17, 2023. Chinese demand for Australian iron ore will remain strong despite the nation’s disappointing post-pandemic recovery, according to Fortescue Metals, the world’s fourth-biggest producer. Photographer: Carla Gottgens/Bloomberg (Carla Gottgens/Bloomberg)

(Bloomberg) -- Iron ore retreated from the highest close in two weeks on rising port inventories in China, the biggest importer of the steelmaking ingredient.

Stockpiles rose for a second week — to 147.7 million tons — at Chinese ports, according to data from Shanghai Steelhome E-Commerce, near the highest seasonal level in recent years. On the other hand, traders are also assessing the impact of Chinese monetary stimulus, which has been introduced since last month in order to shore up confidence in the economy.

  • Iron ore rose sharply in late September on a slew of stimulus measures from Chinese authorities, but has fallen around 7% this month on skepticism on how effective the measures will be at stoking demand
  • Iron ore declined 0.9% to $102.45 a ton in Singapore as of 12:01 p.m. local time, after closing at $103.40 on Monday, the highest since Oct. 16. Futures in Dalian declined, along with steel contracts in Shanghai

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