In Asia, benchmark iron ore futures retreated from an eight-week high earlier this week, mainly driven by policy support in China.
In Shanghai, stainless steel fell to its lowest level since mid-July due to weak demand.
Iron ore for May delivery on the Dalian Commodity Exchange fell 4.1 percent to 636.50 yuan/t ($100.34) after three days of gains.
Iron ore for January delivery on the Singapore Exchange fell 2.4% to $109.75/t.
Noting that the outlook for the iron ore market is challenging, analysts noted that with the restrictions in the Chinese steel industry, the demand for iron ore is likely to decline. However, they pointed out that supply constraints, combined with stability in China's real estate sector, should limit the downside.
On the Shanghai Futures Exchange, stainless steel for January delivery fell 4.5%, rebar fell 1.5% and hot rolled coil fell 1.4%.
Copper prices decline as dollar rises and inventories rise
Copper prices in London slumped as the dollar strengthened and signs of easing in supply tightening.
Three-month copper on the London Metal Exchange fell 0.3% to $9,622/ton at 06.15 CET. The January copper contract on the Shanghai Futures Exchange rose 0.1% to 69,800 yuan/ton ($11,002).
The 0.1% increase in the dollar against other currencies and the highest level of inventories in the LME since October 8 put pressure on prices.
In LME, aluminum was up 0.2% to $2,631/ton, zinc was up 0.2% to $3,315/ton, and lead was trading sideways at $2,284.5/ton, after rising 4.5% yesterday.
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