S&P/ASX 200 (INDEXASX:XJO) slipped 0.36% to 7020 points by 1.10 pm even as iron ore prices hit a decade high of more than US$190 per tonne overnight.
While the broader market was trading lower, iron ore miners Rio Tinto (ASX:RIO) (+0.19%), BHP Group (ASX:BHP) (+0.62%) and Fortescue Metals (ASX:FMG) (+1.06%) were all higher.
Robust demand and concerns over production curbs
According to Fastmarkets MB, Benchmark 62% iron fines imported by China were changing hands for US$193.58 a tonne on Tuesday, up 3.93% from Friday trade.
The high-grade Brazilian index (65% iron fines) also advanced to a record high of US$226.90 a tonne.
Chinese steel futures also closed at record highs, supported by robust demand and concerns over production curbs.
Strong demand for steelmaking raw materials
ANZ senior commodity strategist Daniel Hynes said: “The rally in steel prices shows no signs of slowing down, with futures hitting new highs in China.
“Authorities have pledged to lower output from last year's record levels in a push to curb emissions.
“This comes amid strong demand from the construction and manufacturing sectors.
“With steel producers concerned that the government may remove stimulus measures as the economy stabilises, they are making the most of the high margins, boosting output.
“This is creating strong demand for steelmaking raw materials.”
Top gainers
Today’s top gainers on the ASX include Astro Resources N.L. (ASX:ARO) (+25.00%), Comet Resources Limited (ASX:CRL) (+11.11%), Great Boulder Resources Ltd (ASX:GBR) (+12.20%), Greenland Minerals Ltd (ASX:GGG) (+8.22%), Queensland Pacific Metals Ltd (ASX:QPM) (+19.05%) and Rimfire Pacific Mining N L (+12.50%).
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