Dalian iron ore logs worst week in 2 yrs as China moves to curb rally

Feb 18 (Reuters) - Dalian iron ore marked its steepest weekly fall since February 2020, declining for a fifth straight session on Friday, as traders kept a wary eye on Chinese regulators' intensified efforts to curb a recent surge in prices.

Top steel producer China's state planner, the National Development and Reform Commission, on Thursday told some traders of the steelmaking ingredient to release excessive inventory and reduce stocks to reasonable levels.

The directive followed a joint investigation with the market regulator in Qingdao, one of the country's biggest iron ore ports, where stockpiles had been found out to have increased rapidly amid suspicions of hoarding to drive up prices.

The most-traded iron ore for May delivery on China's Dalian Commodity Exchange ended daytime trading 1.4% lower at 685 yuan ($108.28) a tonne, after earlier hitting 661.50 yuan, its lowest since Dec. 29. It slumped 19% this week.