(Yicai Global) April 19 -- China will crack down on unjustified gains in iron ore prices after a recent surge, according to the state planner.

To curtail unreasonable price increases and facilitate the iron ore market’s steady operation, the National Development and Reform Commission will monitor the market and take comprehensive steps to guarantee supply, adjust demand, and regulate the market with relevant watchdogs, spokesperson Meng Wei said at a press briefing today. 

The NDRC has met with market players and industry experts to analyze the market and price trends, Meng said, and according to them there has been no significant change in the supply-and-demand fundamentals.

Market expectations and other factors have led to higher prices, she noted, adding that with increases in the global supply of iron ore and China’s supply of scrap steel, prices may come down.

The price of the most active iron ore futures contract climbed to CNY936 (USD135.73) per ton in the middle of last month from nearly CNY600 in November. It then started to fall, dropping to CNY784 a ton yesterday.

Since the start of this year, the NDRC and other authorities have been enhancing the collaborative supervision and regulation of the iron ore spot and futures markets and have cracked down on price gouging, excessive speculation, and illegal activities, Meng said. 

The NDRC has also taken steps to improve China’s ability to ensure the supply of resources, Meng pointed out, noting that with relevant measures gradually beginning to take effect, iron ore prices have fallen a little.

Editor: Martin Kadiev