FSUMF - Iron ore soars on China demand but speculative buying stokes caution

Benchmark iron ore futures in China soared more than 7% to 976 yuan ($149.10) per metric ton before closing +6.8% at 971 yuan, sparked by expectations that a recovering economy will lead to strong demand.Futures have surged ~70% this year as China's stimulus-led rebound fuels steel production and consumption - risking a shortage - but some market watchers are starting to caution that prices are rising beyond what may be justified by fundamentals."The market is in disequilibrium right now - investors are trading industrial metals like iron ore as a speculative play on how China’s economy is going to perform," says Navigate Commodities co-founder Atilla Widnell. "There is no way iron ore can be at $150 based on demand and supply fundamentals."China's Dalian Commodity Exchange says it will adjust speculative margin requirements for May iron ore futures and further limit non-futures members' single-day open positions starting next week.Australia's Port Hedland,

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Iron ore soars on China demand but speculative buying stokes caution