Iron ore futures declined as the Chinese government intervened to prevent a price increase. Iron ore December futures on the Singapore Exchange fell 1.46% to $132.7 a tonne.
January futures on China's Dalian Commodity Exchange fell 0.86% to settle at 976.5 yuan per ton. China's state planner said it would supervise spot and futures trading more tightly and closely monitor changes in the iron ore market.
"This doesn't necessarily mean the start of a downward trajectory, prices will stagnate after such moves," said Pei Hao, a Shanghai-based analyst at brokerage FIS. But analysts said price losses were capped by hopes for continued demand as steel margins improved and mills began stockpiling raw materials to meet winter production needs.