Iron Ore Prices Slump After Chinese Regulators Take Joint Action To Strengthen Supervision After Recent Price Spike

In response to the recent rapid rise in iron ore prices, the Price Department of the National Development and Reform Commission, the Price Supervision and Competition Bureau of the State Administration for Market Regulation, and the Futures Department of the China Securities Regulatory Commission held meetings with some iron ore trading companies and futures companies to learn about their participation in iron ore spot and futures trading, and required relevant enterprises to operate in compliance with laws and regulations, forbid them from fabricating and spreading price increase information, or deliberately exaggerating the atmosphere of price increases. They must not hoard goods, inflate prices, engage in excessive speculation, or manipulate the futures market.

After the news was released, iron ore futures plunged. As of CST 11:00, the most-traded contract fell by 1.47% to 971 yuan/mt.