China may try to curb rising iron ore prices: state media

Chinese regulators may take steps to curb rising iron ore prices, the state-run Shanghai Securities Journal said on Friday, without providing details of any actions to be taken.

The news comes after China’s state planner said last week that he had sought expert advice on how to deal with rising prices.

Intraday iron ore prices reached RMB 932.5 ($133.90) a tonne on Friday, the highest level since May 2022.

Prices have risen by nearly 50% since November, although steel demand has only recently started to recover from months of sluggish economic growth.

The state planner, the National Development and Reform Commission, said last week that experts believe the rally was driven by speculation and suggested that authorities should strengthen market supervision and crack down on misleading information about prices and accumulation.

Following the Shanghai Securities Journal news, the most active May contract on the Dalian Commodity Exchange pulled back from its intraday high to close at RMB 910 a tonne, up 0.11%.

The rise in prices has raised operating costs for Chinese steelmakers, which have struggled to turn a profit, and increased the risk of drastic fluctuations in the future, the state-run newspaper reported.

Source: CNN Brasil

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