China’s Iron Ore Giant Says Speculation is Overheating Prices

Iron ore risks becoming detached from physical market reality, as financial speculation drives strong prices more so than underlying supply and demand, according to state-backed trader China Mineral Resources Group Co.

The current resurgence of “false heat” in iron ore prices is the result of speculative trading activity, CMRG warned in a commentary by its research unit published on the WeChat account of the China Iron and Steel Association.