BEIJING: Benchmark iron ore futures in China rose for a fourth straight session on Monday to hold above 900 yuan ($137.63) per tonne despite a warning by the Dalian Commodity Exchange that it would strictly crack down on any illegal transactions. The most-traded iron ore futures, for January delivery, rose 1.6% from the last settlement price to close at 968 yuan ($148.02) per tonne. They fell from Friday's closing price of 972 yuan.
The China Iron and Steel Association (CISA) said on Sunday recent sharp increase in imported iron ore prices had beaten market expectations and increased operational risks in the industry. The steel body also said recent ore prices had deviated from supply and demand fundamentals and noted some abnormal bidding by traders had fuelled index growth, according to an interview with the CISA vice chairman by the official Xinhua News.
The Dalian bourse said on Sunday it had started inspections with other futures regulators and would rigorously investigate market transactions. Spot prices for iron ore with 62% iron content for delivery to China rose by $2.5 to $138.5 per tonne on Friday, according to SteelHome consultancy.
Dalian coking coal jumped as much as 3.8% to 1,528 yuan a tonne and ended up 1.8% after a coal mine accident in Chongqing that killed 23 people. Coke futures increased 1.8% to 2,583 yuan per tonne. Construction steel rebar on the Shanghai Futures Exchange gained 2.6% to 3,980 yuan a tonne. Hot-rolled coil, used in the manufacturing sector, rose 2.1% to 4,335 yuan a tonne.
Shanghai stainless steel futures increased 1.5% to 13,505 yuan per tonne. China's November iron ore imports fell 8.1% from the previous month to 98.15 million tonnes on falling shipments, customs data showed on Monday. Nippon Steel Corp is planning to raise output capacity in overseas markets such as India and the United States and reduce it in Japan to align with future demand levels, a company executive said.
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