Iron and Steel

China to tighten oversight on iron ore market after price rally

China to tighten oversight on iron ore market after price rally
Mining News Pro - China’s state planner said on Thursday that it would closely monitor changes in the iron ore market and further tighten supervision of spot and futures trading in its latest effort to curb a rally in the price of the key steelmaking ingredient.
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The National Development and Reform Commission (NDRC) said it met with iron ore trading companies and futures firms to understand their activity in the spot and futures markets after a “continuous and rapid” rise in iron ore prices.

Despite weaker domestic demand for steel, the benchmark December iron ore contract on the Singapore Exchange has climbed by 22% since late October, hitting a nine-month high on Wednesday.

The benchmark on Dalian Commodity Exchange touched the highest level since August 2021, supported by Beijing’s decision to issue 1 trillion yuan of sovereign debt to revive its economy.

News that Chinese regulators are drafting a list of 50 real estate developers eligible for a range of funding is also supporting the market.

Companies should not fabricate and spread information about rising iron ore prices nor hype prices, the NDRC said in a statement.

Hoarding, excessive speculation and manipulation of the futures market are also not allowed.

Iron ore prices fell after NDRC issued the statement, with DCE’s most-traded January iron ore contract ending morning trading 1.62% lower at 969 yuan ($134.38) a ton while the Singapore benchmark fell 2.09%.

The state planner issued a similar warning in early September, and also took action to cool the market earlier this year.


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