(Yicai Global) Feb. 18 -- China's macroeconomic planning agency and market regulator have asked certain iron ore trading companies in Qingdao to stop hoarding inventory to hike prices of the steelmaking material.

The National Development and Reform Commission and the State Administration for Market Regulation sent a survey team to the eastern port city to make a list of firms with rapidly increasing iron ore inventories and told them to release their reserves to restore reasonable price levels as soon as possible, the NDRC announced on its WeChat account yesterday.

The intervention has been fruitful. Main iron ore futures contract prices dropped more than 5 percent early today and closed 3.8 percent down at CNY684.5 (USD108) a ton, down nearly 20 percent from Feb. 11. Prices had jumped more than 60 percent on Feb. 11 since mid-November.

Authorities will pay close attention to iron ore price changes to maintain regular market order and to guarantee stable prices, according to the NDRC's latest statement.

The move was expected. On Feb. 11, the NDRC said it and the SAMR intend to send a team to some commodity exchanges and key ports to conduct surveys focusing on recent iron ore inventory changes and related firms' futures trading transactions.

On Jan. 28, the NDRC had said that the recent price fluctuations are abnormal. Considering that domestic inventories are at multi-year highs but prices have been surging quickly, there may be speculation, according to analysts.

The NDRC held talks with iron ore information providers on Feb. 9, asking them to reveal their sources and to avoid releasing false information. Consequently, iron ore futures prices slid more than 5 percent on Feb. 9.

Editor: Emmi Laine, Xiao Yi