Benchmark Dalian iron ore futures inched lower in early trade on January 16 on fresh output curbs in China due to pollution, while the market was also cautious after the world's two largest economies sealed the first phase of a trade agreement.
The United States and China agreed to roll back some tariffs and boost Chinese purchases of U.S. products, defusing an 18-month row between the two sides, but leaving a number of sore spots unresolved.
The Dalian Commodity Exchange's most-traded iron ore contract with May expiry dipped 0.3% to 665 yuan/t by 0220 GMT.
Iron ore prices were also pressured by fresh output curbs when China's top steelmaking city Tangshan issued a second-level heavy pollution alert on January 15 evening, according to local government-backed media.
Spot prices of the benchmark 62% iron-content ore held steady at $96.5/t on January 15, unchanged from previous session but still hovering around a near four month high.
(Writing by Emma Yang Editing by Jessie Jia)
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