Dalian iron ore slumped to its lowest in four weeks on Wednesday, pummeled by stricter anti-pollution measures in China’s top steelmaking city of Tangshan and easing concerns about supply of the raw material.
The most-traded May iron ore on the Dalian Commodity Exchange fell 6.1 percent to 1,031.50 yuan ($158.42) a ton, after earlier plunging to its lowest since Feb. 8 at 1,022 yuan. It has fallen 13 percent from a peak of 1,185 yuan hit last week.
On the Singapore Exchange, the front-month contract SZZFJ1 slipped 1.4 percent to $155.40 a ton after Tuesday’s 5.9 percent fall.
“The blast furnace production restriction policy in Tangshan area has become stricter, but the time involved is relatively short, and the impact on the demand for raw materials may be relatively limited,” Sinosteel Futures analysts said in a note.
The government in Tangshan in the smog-prone northern Chinese province of Hebei has issued several emission-control rules since February restricting steel mills’ operations. – Reuters