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Dalian iron ore confined to small trading range
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SGX iron ore slips, but stays above $130/tonne
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DCE adjusts trading limits for iron ore futures
(Updates prices)
By Enrico Dela Cruz
Feb 22 (Reuters) - Iron ore futures were subdued on
Wednesday following an extended rally spurred by optimism around
China demand prospects, after the country's Dalian Commodity
Exchange (DCE) adjusted trading limits for certain contracts.
The adjustments, which came into force from Tuesday's night
session, followed a fresh DCE reminder on Friday about managing
market risks and the need to strengthen daily market
surveillance and ensure market stability.
The DCE had previously made similar adjustments to trading
limits amid speculative trading pushing iron ore prices higher.
Last month, China's state planner repeatedly warned against
excessive price speculation in iron ore, and vowed to increase
supervision of the country's spot and futures markets.
On Tuesday, iron ore futures surged past $130 a tonne,
breaking away from the $120-$130 trading range it had been
confined to for weeks, after the world's largest listed miner,
BHP Group , flagged a brightening demand outlook in top
steel producer China.
Iron ore was also supported on the supply side, with South
Africa's Kumba Iron Ore Ltd cutting its production
outlook for the next three years due to a lack of freight trains
to carry minerals to ports.
The DCE's most-traded May iron ore ended daytime
trade 0.4% lower at 909.50 yuan ($131.90) a tonne, after five
straight sessions of gains.
On the Singapore Exchange, benchmark March iron ore was down 0.5% at $130.35 a tonne, as of 0700 GMT.
"The key factor affecting the ore price is the government's
regulatory policy on the iron ore market, which needs to be
given sufficient attention," Huatai Futures analysts said in a
note.
Steel benchmarks and other Dalian steelmaking inputs were
wobbly.
Rebar on the Shanghai Futures Exchange edged up
0.1%, hot-rolled coil slipped 0.2%, wire rod gained 1.5%, and stainless steel climbed 1.3%.
Coking coal added 0.1%, while coke shed
0.1%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu
Sahu)
