Benchmark iron ore futures in China tumbled for a second straight session on Tuesday, as Beijing’s plans to step up inspection into commodity prices dented sentiment.
The most-traded iron ore contract on the Dalian Commodity Exchange, for September delivery, dropped as much as 5.2% to 1,110 yuan ($171.75) a tonne, its lowest in two weeks. It closed down 2.7% at 1,139 yuan per tonne.
“Following the recent macro policies … speculations have begun to cool down and iron ore prices have fluctuated”, analysts at Huatai Futures wrote in a note.
China’s state planner and market regulator on Monday looked into spot market at the Beijing Iron Ore Trading Center and said they would closely monitor prices and investigate malicious speculation.
Meanwhile, Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were up 2.8%, changing hands for $214.32 a tonne, according to Fastmarkets MB.
