Iron Ore Sinks As China's Top Steel Group Urges Probe Into Rally

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