Benchmark iron ore futures in China rose for a fourth straight session on Monday to hold above 900 yuan ($137.63) per tonne despite a warning by the Dalian Commodity Exchange that it would strictly crack down on any illegal transactions. The most-traded iron ore futures, for January delivery, rose 1.6% from the last settlement price to close at 968 yuan ($148.02) per tonne. They fell from Friday's closing price of 972 yuan.
The China Iron and Steel Association (CISA) said on Sunday recent sharp increase in imported iron ore prices had beaten market expectations and increased operational risks in the industry. The steel body also said recent ore prices had deviated from supply and demand fundamentals and noted some abnormal bidding by traders had fuelled index growth, according to an interview with the CISA vice chairman by the official Xinhua News.
The Dalian bourse said on Sunday it had started inspections with other futures regulators and would rigorously investigate market transactions. Spot prices for iron ore with 62% iron content for delivery to China rose by $2.5 to $138.5 per tonne on Friday, according to SteelHome consultancy.
