Beijing's supervision sends iron ore futures retreating
Noting the recent abnormal rises in iron ore prices, the NDRC has sent a team to the Dalian Commodity Exchange (DCE) to analyze the prices and beef up market supervision, according to a post on the Commission's official WeChat account late November 15.
Following the state planner's announcement, the most-traded iron ore contract on the DCE for next January's delivery closed at Yuan 951.5/dmt ($131.3/dmt) when the night-time trading session ended on November 15, slumping by 2.9% from the settlement price during the same day's daytime session.
Also, just a few hours before the NDRC released the post, the DCE issued a notice to restrict the daily trading limits, including those on opening for long and short positions, to 500 lots/day for iron ore futures contracts for delivery in each month over January-May 2024 from the previous 1,000 lots/day. The limits will be effective from the night-time trading session of November 16 and from November 17. The notice also included trading limits for other iron ore futures contracts and a lift of trading fees as well.
Previously, the DCE made similar acts of restricting trading on November 6 and October 26, after iron ore futures climbed persistently, as reported.
Written by Lea Li, liye@mysteel.com
Edited by Alyssa Ren, rentingting@mysteel.com
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