The iron ore price fell on Wednesday amid the sentiment of declining profitability at Chinese steel mills after the latest increase in steelmaking materials prices.
Comparison of 62% Fe fines imported into northern China fell 0.3% to $145.84 per ton on Wednesday morning.
The top-traded iron ore contract for September delivery on China's Dalian Commodity Exchange DCIOcv1 ended day trading at 926.50 yuan ($138.85) per ton, down 0.5 percent.
A rally that started in late May had pushed Dalian iron ore to a 10-month high on Monday, bolstered by renewed optimism about demand in China.
Concerns about declining inventories of imported iron ore at Chinese ports fueled the rally.
"Short-term movement is up but valuation is high and volatility risk will increase in June-July," Zhongzhou Futures analysts wrote in a note. Said.
"Iron ore is fluctuating high," Zhongzhou analysts said, blaming low profits that led mills to be cautious with purchases.
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