China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
Iron ore prices fell on Friday after China’s state planner pledged to step up regulatory oversight of the market following another price rally.
Chinese authorities are again closely watching market dynamics, having discussed price movements with some futures companies.
According to Fastmarkets, benchmark 62% Fe fines imported into Northern China fell 0.72% on Friday, to $116.49 per tonne.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 2.1% lower at 827.50 yuan ($112.61) per metric ton, after a 0.9% decline on Thursday, putting it on track for its first weekly fall in five weeks.
“Iron ore edged lower as Beijing targets market exuberance,” ANZ commodity strategists said in a note.
“Regulators told futures companies in a recent meeting to not deliberately exaggerate the atmosphere of iron ore price rallies and to analyse the market objectively.”
Dalian iron ore rallied 14.4% in August.
China’s iron ore imports in August climbed 13.8% from July, fueled by growing demand from steel mills ramping up production ahead of peak construction months.
(With files from Reuters)
