REFILE-UPDATE 1-China iron ore futures plunge nearly 10% after record-setting rally

(Changes quote in the paragraph 4 to “future” from “futures”)

BEIJING, May 13 (Reuters) - Ferrous prices in China fell on Thursday, led by benchmark iron ore that plunged as much as 9.5% as market participants paused after a super rally that sent prices to historical highs over the past few days.

The most actively traded iron ore on the Dalian Commodity Exchange, for September delivery, closed down 7.5% at 1,217 yuan ($188.66) per tonne, after touching 1,190 yuan earlier in the session. The decline snapped a five-session rally.

Dalian iron ore prices in May had jumped 23%, or 248.5 yuan, by Wednesday as steel production curb worries, peak season demand and inflation concerns fuelled speculative buying.

“We do not see extreme tightness in the iron ore market, now or in the future. We see little support for the price rising this high above the cost of the marginal producer in the market,” Erik Hedborg, an analyst with CRU, said in a note.

Other steelmaking ingredients also pulled back. Dalian coking coal and coke both declined 3.9% to 1,988 yuan and 2,729 yuan per tonne, respectively.

China’s state council said on Wednesday it would step up coordination between monetary policy and other policies to maintain stable economic operations and cope with a fast increase in commodity prices, without outlining detailed measures.

Construction-used steel rebar on the Shanghai Futures Exchange, for October delivery, fell 2.9% to 5,915 yuan a tonne.

Hot-rolled coils, used in the manufacturing sector, slipped 2.5% to 6,438 yuan per tonne.

The June contract for stainless steel futures declined 2% to 15,260 yuan a tonne.

($1 = 6.4507 Chinese yuan renminbi)

Reporting by Min Zhang and Shivani Singh; Editing by Subhranshu Sahu and Vinay Dwivedi