Ferrous metals prices plummet as China moves to stabilize market
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Update time : 2021-05-22 10:05:34
The prices of ferrous metals, including iron ore and deformed steel bar, slumped on Thursday after Chinese regulators took steps to rein in rapid price hikes.
Ferrous metals' futures prices saw a continuous decrease over the past two days. The price of iron ore dropped as much as 8.4 percent on Thursday, while that of coke was down as much as 7.2 percent.
The price declines are likely due to the government's measures, which include crackdowns on speculation, and they will ease pressure on downstream enterprises, Wang Guoqing, research director at the Beijing Lange Steel Information Research Center, told the Global Times on Thursday.
Prices of staple commodities have seen dramatic increases since the beginning of the year due to the global recovery from the COVID-19 pandemic, which drove up demand.
Surging prices were putting huge cost pressures on downstream enterprises, leading Chinese regulators to take action to stabilize the prices of staple commodities.
