The largest steel industry group in China has urged the government to maintain order in the global iron ore market after prices surged to a five-year high following a supply squeeze, saying that it’s requested authorities look into the gains. Futures slumped.
The China Iron & Steel Association “is reporting relevant problems in the industry to government ministries and regulators, urging a stronger investigation and supervision to maintain normal iron ore market order,” Vice Chairwoman Qu Xiuli said at a conference in Shanghai on Friday. The group wants to see prices back at “reasonable levels,” she said.
Iron ore, which had surged above $120 a ton after a dam disaster in Brazil and bad weather in Australia curtailed shipments just as China’s mills ramped up steel output, is in freefall as the negatives stack up