Dalian Commodity Exchange announced on April 24 that for non-members futures companies it is limiting the opening of futures positions for futures contracts i2405 and i2409 to no more than 500 lots, with no more than 2,000 lots for other futures contracts, which signals that there is an expectation of suppression of iron ore prices in the short term against the backdrop of the recent strong rises in iron ore futures prices.
However, China’s treasury bond funds have been gradually injected into actual projects, which has exerted a positive impact on the demand for steel. At the same time, inventory of iron ore has indicated a declining trend, bolstered prices to a certain degree. As the Labor Day holiday (May 1-5) is approaching, steelmakers will likely build up iron ore stocks, which will positively affect prices.
Most market players remain bullish on the trend for iron ore prices in the near future.
