Prices of some major iron ore futures in China dropped as much as 3.5% Friday morning, as traders brace for a possible government crackdown on high prices. 

The “relevant government departments” are closely watching increases in iron ore prices, and will strictly crack down on monopolistic and intentionally “unreasonable” pricing, Qu Xiuli, vice chairman of China’s top industrial association for iron and steel, said on Friday.

Qu’s comments come after iron ore futures traded in the northeastern city of Dalian reached a four-year high on Wednesday, which analysts believe was largely driven by global shortages and rebounding demand from Chinese steelmakers. 

Contact reporter Zhao Runhua (runhuazhao@caixin.com)