Impact of Regulation on Iron Ore Prices

Most of the friends who follow our 3047 Iron Ore ETF Public Issue know that iron ore is actually a seasonal and cyclical futures product. Usually 1, 2, 7, 8 of every year is the peak season, 5, 6, 9, 10 is the low season. Usually the price of iron ore rises in the first half of the year and the second half At the end of the year, if it is possible to seize the opportunity to invest without loss it is a good investment strategy, but in addition to this cyclical regularity, iron ore prices will be influenced by many other factors. Over 70% of the world's iron ore demand comes from China, and China has decided Most of the needs for iron ore. China's own production of iron ore (iron content) is highly dependent on imports from foreign countries, such as Australia, Brazil, etc., so if China-Australia relations are tense, such as in the past, there will be an impact on the supply of iron ore. It is common for iron ore to eventually become steel after a series of processes. The limited power output that has occurred can also lead to a decrease in the demand for iron ore, which reduces the demand for iron ore, as more work begins every year after the end of the year and the peak season for iron ore occurs. The price of iron ore increases and sometimes increases rapidly Too soon, this will also attract the attention of the relevant departments. In the past 2 and 3 years, there have been several orders issued to regulate iron ore prices. Recently, the State Commission issued a commission to organize inspection centers together with experts from within the industry to address the rapid increase in iron ore prices. Conducting meetings, analyzing iron ore market and price movements, proposing policies and recommendations. Some experts said that the relevant departments will continue to strengthen the supervision of the iron ore spot and futures market links, and severely crack down on illegal violations that spread price information, hoarding curbs, and price gouging, etc. Effectively curb unreasonable increases in iron ore prices. As for whether regulation is useful, we believe that the answer is yes, but the timeliness and regulatory power of the regulation is limited. We summarize the price changes of the 3047 Iron Ore ETF (passively tracking the Iron Ore Futures Price Index on the Dalian Commodity Exchange) for your reference in recent years after issuing a proclamation Exam.

Source: wind mountain pass international