China ferrous prices drop as steel hub Tangshan cautions mills on irregularities
Chinese ferrous futures extended losses on Friday, with steel prices plunging after top producer Tangshan city warned mills to maintain market order, while iron ore gave up its weekly gain.
The local government said it would look into illegal behaviours and suspend business at mills found manipulating market prices, spreading rumours or storing up goods to make a good bargain, as the growth in steel prices has outpaced the rise in costs. (bit.ly/33FXWV0)
The most-traded steel rebar on the Shanghai Futures Exchange , for October delivery, closed 6% lower at 5,641 yuan ($876.61) per tonne.
Hot rolled coils, used in the manufacturing sector, declined 6.0% to 6,135 yuan per tonne but still logged a 2.3% weekly gain.
The plunge in steel prices follows a drop in the prices of steelmaking ingredients.
Benchmark iron ore futures on the Dalian Commodity Exchange , for September delivery, dived 7.5% to 1,173 yuan a tonne. The contract fell 4.4% this week.
Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62, compiled by SteelHome consultancy, had declined $12 to $220.5 a tonne on Thursday.
Dalian coking coal futures fell 5.0% to 1,922 yuan per tonne.
Coke futures on the Dalian bourse were closed 6.4% lower at 2,615 yuan a tonne.
Source: Reuters (Reporting by Min Zhang and Shivani Singh; Editing by Vinay Dwivedi)