HomeMarket NewsMiningChina Cracks Down on Iron Ore Prices in a Move To Maintain...

China Cracks Down on Iron Ore Prices in a Move To Maintain Market Health

Actionable Trade Ideas

always free

China, in a surprising twist, revealed on Monday that it had carried out a comprehensive survey on the price indices of various commodities, such as steel, iron ore, and lithium, in a bid to preserve a robust market. The pricing monitoring centre of the Development and Reform Commission (NDRC) made this decision, stating that it aimed at deepening its comprehension of the compilation of prices, collection of data, as well as the operation of the price release system across multiple agencies.

This move comes on the heels of the NDRC issuing not one, but two stern warnings in the past week, emphasizing the need to reinforce supervision on the iron ore market in order to control an ongoing price rally.

The prices have seen a substantial surge of approximately 30% since August, attributed to optimism for more stimulus in the property sector.

image 29

Observers closely monitoring the market express hope over China’s announcement of a 1 trillion yuan ($140 billion) debt issuance last month, anticipating it would lead to more affordable housing and elevate the steel markets.

β€œSince the valuation of both steel and raw materials has entered an absolute high range, the continuing upward movement in the fourth quarter requires more powerful policy pivots,” stated Jiang Mengtian, an analyst at China-based independent researcher Horizon Insights.

(With files from Reuters and Bloomberg)

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.