Iron indexes extended losses overnight as slow demand from top buyer China continued to drive prices further from recent highs, but steel prices edged higher, with Shanghai rebar up around a third of a percent.
Chinese buyers have resisted the temptation to stock up on Indian iron ore before a tax hike on April 1, which will lift the duty on iron ore fines to 20 percent from 5 percent.
Huge stockpiles of imported ore at Chinese ports, which exceeded 80 million tonnes last week, are also deterring Chinese steel mills and traders from snapping up Indian material in the spot market.
That reluctance to buy pushed the Steel Index assessment for 62 percent iron ore down $2.10 to $178.00 a tonne .IO62-CNI=SI and prices have lost 7.2 percent in the past 10 sessions.
Metal Bulletin's assessment fell 75 cents to $179.29.
The most active steel rebar contract for October delivery on the Shanghai Futures Exchange touched 4,878 yuan. By 0305 GMT, it had pared gains to 4,683 yuan, up 16 yuan on the day.
Brazilian mining giant Vale said on Wednesday it had temporarily halted commissioning at its iron pellet plant in Oman due to unrest caused by protests in favour of political reform.
"As a preventative measure, Vale has temporarily interrupted the commissioning at （the） pellet plant until the situation normalizes," the company said in an e-mailed statement. "The workers, most of them Omani, were told to stay at home." （Reuters）
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