BEIJING: Chinese ferrous futures fell on Tuesday, with benchmark iron ore slipping below the 1,000 yuan per tonne level in intraday trade, as demand was hit by a recent cold spell and worries over a rise in domestic virus cases.

China has issued an orange alert for a cold wave, with temperatures in most parts of central and eastern regions of the country expected to drop by as much as 16 degrees Celsius.

The country also reported 27 new coronavirus cases on Dec. 28, including 15 that were locally transmitted, prompting local governments to impose fresh curbs. The most traded iron ore futures on the Dalian Commodity Exchange for May delivery ended down 2.5% at 1,011 yuan ($154.81) per tonne after hitting a low of 995 yuan per tonne. Spot prices of iron ore with 62% iron content for delivery to China were little changed at $166 per tonne on Monday.

Dalian coking coal fell 2.6% to 1,661 yuan a tonne, while coke futures dropped 1.9% to 2,796 yuan per tonne.

“Futures prices (for coke and coking coal) are adjusting from high levels this week,” Tianfeng Futures wrote in a note.

However, with increasing molten iron output and lower coke inventories, Tianfeng Futures said it expected supply shortage could continue.

Steel rebar on the Shanghai Futures Exchange fell 1.5% to 4,234 yuan per tonne.

Hot rolled coil closed 2.3% lower at 4,401 yuan a tonne.

Shanghai stainless steel for February delivery fell 2.6% to 13,295 yuan per tonne.

The Dalian exchange will increase speculative margin requirements for iron ore futures from settlement on Dec. 30. It will also raise trading limits and margin requirements for coke and coking coal futures.