Authorities in China, which is the world’s biggest steel producer and buys about two-thirds of global seaborne iron ore, are again closely watching market dynamics, having discussed price movements with some futures companies.
The most-traded January iron ore on China’s Dalian Commodity Exchange ended daytime trade 2.1% lower at 827.50 yuan ($112.61) per metric ton, after a 0.9% decline on Thursday, putting it on track for its first weekly fall in five weeks.
On the Singapore Exchange, iron ore’s benchmark October contract was down 1% at $113.05 per ton, as of 0700 GMT, following a 1.7% slump in the prior session. “Iron ore edged lower as Beijing targets market exuberance,” ANZ commodity strategists said in a note.
“Regulators told futures companies in a recent meeting to not deliberately exaggerate the atmosphere of iron ore price rallies and to analyse the market objectively.” Dalian iron ore rallied 14.4% in August, while Singapore prices climbed 8%, despite flagging steel demand from the ailing Chinese property sector.
