Dalian Commodity Exchange (DCE) in China has announced that it will raise the daily fluctuation limit of prices from ±8 percent to ±10 percent and will increase the trading margin for iron ore futures from 8 percent to 10 percent as of the end of June 23 due to the approach of the Dragon Boat Festival (June 25-27).
The DCE also stated that as of the start of trading on June 29 (following the Dragon Boat Festival) the daily price fluctuation limit and the trading margin for iron ore futures will not be adjusted back to the previous levels, but will remain at the levels implemented during the holiday.
Market analysts consider that the DCE’s move is aimed at helping to maintain market stability approaching the holiday as iron ore futures prices at DCE have been moving at high levels, resulting in potential high risks.
