Iron ore prices fell on Thursday after China sought stricter oversight of commodity markets to curb exorbitant prices.
Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $211.85 a tonne, down 2%, according to Fastmarkets MB.
September iron ore on the Dalian Commodity Exchange ended daytime trading 5.7% lower at 1,142.50 yuan ($177.40) a tonne, after earlier hitting a three-week low of 1,102 yuan.
Rebar on the Shanghai Futures Exchange shed 4.7%, hot-rolled coil dropped 4.5%, while stainless steel slumped 2.8%. Dalian coking coal tumbled 8% and coke lost 4.8%.
The world’s biggest producer of steel products has sharply increased consumption of iron ore and other steel ingredients while ramping up output for use in producing home appliances and construction materials amid robust demand spurred by global stimulus measures.
On Wednesday, China’s cabinet vowed to strengthen its management of commodity supply and demand to curb “unreasonable” price increases and protect consumers.
“Commodity prices have come under pressure overnight amidst the broader risk-off sentiment and as China’s State Council warned about commodity prices,” Tapas Strickland, Sydney-based economist for National Australia Bank told Reuters.
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