China Iron & Steel Association (CISA) warned about speculation risks in the market, as the trend for the iron-ore index was deviating from the supply and demand fundamentals and the spot market, the Xinhua official news agency reported on Sunday.
Benchmark Platts iron-ore index had surged 15%, as of last Friday after the holidays, Luo Tiejun, vice chairman of CISA, told Xinhua in an interview, adding that prices for steel products dropped 9% between February 3 and March 13.
"Iron-ore prices rose 20% at same period last year due to Brazil’s tailing dam disaster," said Luo. "Now it rose obviously again, [which is] more driven by capital and sentiment."