Iron ore futures in Asia dropped on Monday, as the Chinese National Development and Reform Commission (NDRC), said that it has joined with the market regulator to look into the iron ore spot market and has pledged to crack down on hoarding and speculation.
The move comes after NDRC said on Thursday that new rules on the management of price indexes for commodities and services will be effective August 1 and will standardise price index compilation and transparency of information.
During a visit to the Beijing Iron Ore Trading Center Corporation (COREX), the NDRC and State Administration for Market Regulation surveyed iron ore transactions and price changes this year, the state planner said.
Benchmark iron ore futures on the Dalian Commodity Exchange plunged as much as 9% to 1,119 yuan ($173.14) per tonne on Monday, narrowing their gains to 30% so far in 2021.
Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were down 4.9%, changing hands for $208.15 a tonne, according to Fastmarkets MB.
