Steel and iron ore prices fell 6% due to China’s repression and weather

Chinese steel and iron ore prices fell on Wednesday after Shanghai futures pledged “extraordinary deals”, citing the government’s earlier efforts to stimulate commodity inflation through warnings.

Shanghai Construction Steel Rehabilitation SRBCV1 Day Trading ended 6% lower at 4,667 Yuan (29 729.79), hitting its lowest level since March 24, hitting 4,661 Yuan previously.

The hot-rolled coil SHHCcv1 fell 5.4% at 5,017 yuan per tonne, reaching a two-month low of 5,011 yuan.

Shanghai futures trading intensified after Jiang Yan, chairman of the Shanghai Futures Exchange, told a forum that he would “closely monitor market changes and actively investigate unusual transactions”.

Iron ore on the Dalian Commodity Exchange was down 6.1% to 994.50 yuan per tonne, above the day low of 992 yuan, the weakest since April 12.

At the Singapore Stock Exchange, iron ore SZZFN1 0716 GMT fell 5.7% to $ 166.75 per tonne.

The trade began as there were already markets on concerns about the monsoon in the south of China and warmer temperatures in the north slowing down construction activities, which will reduce demand for refurbishment and iron ore.

“Domestic construction … the off-season is coming soon,” Huawei Futures analysts said in a statement.

Rainfall in some parts of central and southern China has reached record levels.

After China promised to strengthen price controls on key commodities, including iron ore, under the five-year plan, Huawei analysts said, “we do not rule out the possibility of further regulatory policies.”

On May 12, iron ore prices fell sharply. Benchmark spot price of 62% ore was $ 192.50 per tonne on Tuesday but fell 17% from its peak, according to Steel home consulting data.

Shanghai Steel SHSScv1 lost 0.9%.

Dalian coking coal DJMCV1 fell 0.9%, while Coke DCJCV1 fell 1.7%.

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