Iron ore futures fell on Thursday, with the Dalian benchmark hovering around a more than four-month low hit earlier this week on concerns over steel output controls in China and signs of economic slowdown in the world’s top metal consumer.
The most-traded iron ore on China’s Dalian Commodity Exchange ended the morning trade 2 percent lower at 839 yuan ($129.57) a ton, resuming its downtrend after a 1.9 percent gain in the previous session.
The steelmaking ingredient’s most-active September contract on the Singapore Exchange shed as much as 3 percent to $158.90 a ton.
China, which accounts for more than half of the world’s steel output, is seeking to limit its full-year production to no more than the 2020 volume in order to cut emission levels, but the restrictions imposed on mills are likely to be extended beyond this year.
Authorities in the steel production hub Tangshan city in Hebei province have issued an air quality control plan for the Beijing Winter Olympics in February, imposing ultra-low emission standards across the steel and power sectors until March.
“The continued tightening of Hebei’s production limit means that the country’s crude steel production will fall more than previously expected,” Sinosteel Futures analysts said in a note. — Reuters
