During trading on November 2, the iron ore futures price (main contract J1701) at Dalian Commodity Exchange (DCE) hit a peak level of RMB 509/mt ($75/mt) - its highest price level in more than two years. However, the iron ore futures price, which had opened at RMB 503/mt ($74/mt) on the date in question, eventually declined to RMB 492/mt ($73/mt) by the close of business, down 1.8 percent during the day’s trading.
The devaluation of the Chinese currency has contributed significantly to recent increases seen in iron ore prices. Meanwhile, experts consider that the Chinese currency may lose further value against the US dollar due to the strong likelihood that the US Federal Reserve will hike interest rates in December. As a result, iron ore prices would receive further support.
Meanwhile, finished steel prices in China have continued their rising trend, helping to push up iron ore prices.