SHANGHAI/BEIJING: China's Dalian Commodity Exchange has proposed cutting some trading position limits by more than half for its iron ore futures after both the most traded contract and spot prices soared to records on Monday.

In a statement issued late on Monday, the exchange said it was proposing changing position limits for non-futures company members to either 15,000 or 20,000 lots from the current 40,000 lots. It said the proposed reductions were designed "to strengthen the risk management of iron ore futures".

The bourse said in the statement it's soliciting public opinion on the changes until Dec. 23.

Iron ore futures prices have surged by over a quarter value so far this month on a bullish demand outlook and concerns about supply. Steelmakers, industry association and the bourse had called for rational investments and for scrutiny on possible irregularities in the market.

The exchange already tightened single-day open positions on its most traded iron ore contract twice since the start of December to 5,000 lots as prices soared beyond market expectations.

It said on Monday that it would further limit open positions for all iron ore futures to 2,000 lots from the Dec. 22 trading day.