China benchmark iron ore futures tumble 6% on Beijing warning

[BEIJING] Benchmark iron ore futures in China plunged more than 6 per cent on Wednesday (Feb 9), snapping a five-session rally, after authorities pledged to strengthen supervision of the market and crack down on any irregularities.

The state planner and market regulator said in a statement they had warned iron ore information providers to ensure the accuracy of their release and should not fabricate or drive up prices.

The most actively traded iron ore futures on the Dalian Commodity Exchange, for May delivery, dived as much as 6.2 per cent to 779 yuan (S$164.53) a tonne, the biggest percentage loss since Nov 26. The contract closed 5.9 per cent lower at 781 yuan per tonne.

"As authorities are paying close attention to iron ore, prices could weaken affected by market sentiment," GF Futures analysts wrote in a note.

Other steelmaking ingredients also declined, with Dalian coking coal futures falling 3.9 per cent to 2,320 yuan a tonne, while coke prices stepped back from gains in morning trade and ended down 1.5 per cent to 3,026 yuan per tonne.

Construction material steel rebar on the Shanghai Futures Exchange slipped 1.3 per cent to 4,843 yuan a tonne.

Hot-rolled coils futures fell 1.2 per cent to 4,980 yuan per tonne at close.

Shanghai stainless steel futures, for March delivery, rose 1.1 per cent to 18,210 yuan a tonne. REUTERS