Chinese regulators launch probe into spot iron ore trading

Beijing

CHINA'S state planner, the National Development and Reform Commission (NDRC), said on Monday that it and the market regulator are jointly looking into the iron ore spot market and have pledged to crack down on hoarding and speculation.

The move comes after NDRC announced last Friday that an investigation has been launched into coal prices and as China is taking several steps to tamp down commodity prices.

During a visit to the Beijing Iron Ore Trading Center Corporation (COREX), the NDRC and State Administration for Market Regulation discussed works to ensure supplies and stabilise iron ore prices, the state planner said in a statement.

"Iron ore prices have risen significantly and remain high, putting pressure on production and operation at mid- and downstream companies," said the statement, citing a meeting held by the authorities.

The regulators said that China would closely monitor spot trading prices and investigate malicious speculation in a timely manner.

They would also "strictly punish and disclose" irregularities such as hyping prices and hoarding, and maintain good market order, said the statement.

Benchmark iron ore futures on the Dalian Commodity Exchange plunged as much as 9 per cent to 1,119 yuan (S$232.65) per tonne on Monday, narrowing their gains to 30 per cent so far in 2021. REUTERS