As of the close of settlement on December 6, trading margins of iron ore futures contracts will be adjusted to 11 percent for speculative transactions from 15 percent, while remaining at 11 percent for hedging transactions, while the limit of price fluctuations will be adjusted to nine percent from 11 percent, as announced by Dalian Commodity Exchange (DCE) on December 4.
DCE’s move reduces the threshold for speculative transactions, aiming to encourage trading activities, signaling that iron ore futures prices will be more volatile in the future.