Benchmark iron ore futures plunged on Tuesday, extending Monday’s sharp losses, as traders charged out of the commodity amid fears of a China clampdown as Beijing warned it would act against what it called the spread of misinformation on prices.
The most-traded iron ore for May delivery on China’s Dalian Commodity Exchange tumbled as much as 9.7 percent to 701 yuan ($110.35) a ton, its weakest since Jan. 18.
The steelmaking ingredient’s front-month March contract on the Singapore Exchange slumped by as much as 11.4 percent to $131.55 a ton.
“Iron ore futures remained under pressure amid China’s determination to limit speculative price gains,” ANZ commodity strategists said in a note.
The continued sell-offs reflected growing investor jitters, with Chinese publication Economic Observer reporting that China’s state planner and market regulators were scheduled to summon some domestic iron ore traders later in the day for a “reminder and warning symposium”.
