Iron ore price sinks as China vows to punish market manipulation
MINING.COM Staff Writer , 14 May 2021
Iron ore’s slump from a record accelerated as China ramps up efforts to control prices.
Benchmark iron ore futures on the Dalian Commodity Exchange, for September delivery, dived 7.5% to 1,173 yuan ($182.22) a tonne. The contract fell 4.4% this week. Spot prices of iron ore with 62% iron content for delivery to China, compiled by SteelHome consultancy, had declined $12 to $220.5 a tonne on Thursday..
China’s cabinet on Wednesday said that government departments would step up coordination on policies to stabilise the economy and accommodate the fast increase in commodity prices, same day iron ore price surged to a record $237.57 per tonne in New York.
Officials in Tangshan, the heart of China’s steel industry, also warned its steel mills to maintain market order and safeguard companies’ normal operations.
The local government there said it would look into illegal behaviour including market manipulation, spreading rumours, and hoarding, and would punish and suspend businesses found guilty.
“Sentiment is very volatile, and the Chinese government’s control is very strict,” Wang Yue, an analyst with Shanghai East Asia Futures Co told Bloomberg.
“Ferrous metals have been falling since Premier Li pledged to control the commodities surge earlier this week, which showed the government is very much concerned” about the impact on manufacturers’ profitability, Wang said.
