BEIJING- Benchmark iron ore futures in China fell on Wednesday after closing at a record high in the previous session on expectations of price controls and steel output curbs.
The China Iron and Steel Association said on Tuesday that fast-rising iron ore prices are “unreasonable”, the industry should enhance exploitation of resources both at home and abroad, and also improve rules for the futures market.
Meanwhile, the country’s environment ministry pledged it would dispatch specific panels to the ferrous sector and strengthen supervision and support, an official said in a briefing on Wednesday, without mentioning which mills or what places they would go.
The most traded iron ore futures on the Dalian Commodity Exchange, for September delivery, fell 1.4 percent to 1,134 yuan ($174.83) a ton.
Spot prices of iron ore with 62 percent iron content for delivery to China, however, increased $4 to $194.5 a ton on Tuesday from the previous trading day, according to SteelHome consultancy.
“Iron ore prices rose on restocking demand before the Labor Day holiday period… also increased on elevated steel margins in China,” analysts with Commonwealth Bank commodities wrote in a note. — Reuters
