Iron ore futures slip on Beijing's probe into price indices
Aiming at the promotion of a reasonable formation of prices and maintaining healthy markets, the Department of Price of the NDRC delved into the compilation plan, data collection and calculation of those indices, according to the Commission's post on its WeChat account late Monday.
Following the announcement, the most-traded iron ore contract on the Dalian Commodity Exchange (DCE) for next January's delivery retreated by 0.6% from the settlement price during Monday's daytime session to close the nighttime trading session of the same day at Yuan 970.5/dmt ($135.7/dmt).
For iron ore, the latest and also the fourth move taken by the NDRC so far this month to supervise the market and calm its surging prices seemed an intensified one, after the state planner held meetings with trading and futures companies and guarded against hoarding ore at ports previously, Mysteel Global understood.
The DCE iron ore futures performed quite strongly recently, owing in part to the optimistic sentiment brought by China's favorable policies for its property market. Also, the futures of iron ore were able to rebound fast from the short-lived dips after Beijing's previous warnings this month to strengthen its supervision on the iron ore market, Mysteel Global observed.
As a result, spot prices of imported iron ore in China still hovered at particularly high levels of late. For example, Mysteel SEADEX 62% Australian Fines sat at $133.75/dmt CFR Qingdao on November 27, jumping by $11.95/dmt on month and $34.85/dmt on year respectively.
As of press time, the declines in the DCE iron ore futures have extended and deepened from the level seen during Monday's night session, Mysteel Global noted.
Written by Lea Li, firstname.lastname@example.org
Edited by Alyssa Ren, email@example.com
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