Iron ore wobbles as China stimulus-driven frenzy fades
BEIJING, Oct 8 (Reuters) -Prices of iron ore futures wobbled on Tuesday, as some investors unwound long positions to lock in profits, with some analysts saying top consumer China missed expectations for unveiling more forceful stimulus.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 traded 0.69% lower at 797 yuan ($112.62) a metric ton, as of 0258 GMT. It touched the highest since July 8 at 844.5 yuan a ton earlier in the session.
The benchmark November iron ore SZZFX4 on the Singapore Exchange slid 3.89% to $107.4 a ton, after hitting the highest since June 3 at $115 a ton earlier.
It had risen by 2.5% when the Chinese market was closed for a public holiday.
China is "fully confident" of achieving its full-year economic targets, the state planner said at a press conference in Beijing on Tuesday.
"The long-awaited conference this morning failed to deliver the expected signal of further strong stimulus," said Pei Hao, an analyst at international brokerage Freight Investor Services.
"Therefore, some (traders) liquidated part of long positions to cash in profit."
A raft of monetary easing policies and property stimulus in the world's second-largest economy in the past two weeks have seen prices of the key steelmaking ingredient jump by more than 20%.
China's home sales rose during the National Day holiday after a string of property stimulus measures to boost the country's beleaguered real estate market since late September, state media said on Saturday.
Separately, Chinese regulators have urged financial institutions to strengthen internal control over leverage, and prevent bank loans from illegally entering the stock market, a newspaper affiliated to China's central bank said on Tuesday.
Other steelmaking ingredients on the DCE gained ground, with coking coal DJMcv1 and coke DCJcv1 up 2.68% and 1.4%, respectively.
Steel benchmarks on the Shanghai Futures Exchange broadly recorded gains. Rebar SRBcv1 rose 2.19%, hot-rolled coil SHHCcv1 added 3.03%, wire rod SWRcv1 surged 8.32% and stainless steel SHSScv1 climbed 1.93%.
($1 = 7.0769 Chinese yuan)
Reporting by Amy Lv and Colleen Howe; Editing by Mrigank Dhaniwala
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