UPDATE 2-Fortescue sees stable iron ore price as China curbs speculation

miércoles 4 de mayo de 2016 05:14 GYT
 

* Fortescue sees stable iron ore price

* Says China balancing need for investment with futures curbs

* Speculators crowd out producers and users (Adds further CEO comment, details, Dalian Commodity Exchange data)

By James Regan

SYDNEY, May 4 (Reuters) - Australia's Fortescue Metals Group expects iron ore prices to stabilise finally as China walks a fine line to curb market speculation that has triggered a recent run-up in iron ore futures, the miner's chief executive said on Wednesday

Iron ore has galloped up 45 percent so far this year, after contracting by just as much over 2015, as everyone from professional investors to students bet on a seesawing market on platforms such as the Dalian Commodity Exchange.

There were about $330 billion in iron ore futures trades on the exchange in April, where turnover was up 186 percent from April 2015.

"The Chinese government wants more market forces to drive the economy and they are encouraging those processes," Fortescue CEO Nev Power said.

"But on the other hand, they do not want it to get out of control," he said.   Continuación...