MANILA: Dalian iron ore was headed for its worst week since February 2020, falling for a fifth session in a row on Friday, as traders kept a wary eye on Chinese regulators’ intensified efforts to curb a recent surge in prices.

Top steel producer China’s state planner, the National Development and Reform Commission, on Thursday told some traders of the steelmaking ingredient to release excessive inventory and reduce stocks to reasonable levels.

The directive followed a joint investigation with the market regulator in Qingdao, one of the country’s biggest iron ore ports, where stockpiles had been found out to have increased rapidly amid suspicions of hoarding to drive up prices.

The most-traded iron ore for May delivery on China’s Dalian Commodity Exchange slumped as much as 4.8% to 661.50 yuan ($104.42) a tonne, its lowest since Dec. 29. It has fallen almost 18% this week.

On the Singapore Exchange, the front-month March contract shed as much as 5% to $125 a tonne, its weakest since Jan. 18.

Spot iron ore in China dipped to $134.50 a tonne on Thursday, the lowest since Jan. 19 and down almost 12% from a 5-1/2-month peak of $152.50 scaled on Feb. 10, SteelHome consultancy data showed.