Since January 2019, spot and futures prices of iron ore have continued to rise rapidly. As of July 8th, the iron ore futures index had risen by 65.53% this year.

The China Iron and Steel Association (CISA) said that the reason for the rise in iron ore prices didn't exclude over-interpretation of the market and capital speculation. The phenomenon had attracted the attention of the Chinese government.

The relevant regulatory authorities were investigating the causes, cracking down on non-standard practices and maintaining the normal competition order of the market. This also showed the significance and far-reaching impacts of iron ore resources on the steel industry. If the price of iron ore continued to rise unreasonably, it would certainly affect the stable development of the Chinese steel industry.

At present, the CISA has set up a working group on imported iron ore, which was composed by Baowu Group, Ansteel Group, Shougang Group, and so on.

In the second half of this year, Chinese iron ore supply and demand didn't change fundamentally. With the recovery of foreign mining output and government supervise, iron ore supply might be in excess of demand, and prices were expected to become more reasonable.