Dalian iron ore drops

SINGAPORE: Dalian iron ore futures fell on Thursday, as Chinese authorities intervened to control soaring prices and weak property data fuelled concerns about demand from the key steel-consuming sector.

The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) closed 1.5% lower at 956 yuan ($131.77) per metric ton, after rising 1% in the previous session. On the Singapore Exchange, the benchmark December iron ore edged up 0.1% at $130.04 a ton. “The recent sentiment-driven surge in iron ore prices has caught the attention of Chinese authorities,” said Atilla Widnell, managing director at Navigate Commodities.

“The National Development and Reform Commission (NDRC) is investigating what they consider to be “unreasonably high” prices, and the Dalian has adjusted iron ore futures trading limits.”