Iron ore price mixed as steel group urges producers to cut output
Iron ore prices were mixed on Wednesday while a China steel industry group urged producers to curb output to stay afloat.
Steel prices in China have sunk amid a disappointing pace of recovery in demand, posing challenges to the industry, according to the China Iron and Steel Association.
The group has urged producers to cut output to help ensure a stable cash flow.
Already, more than 30 steel mills have issued plans for maintenance as of Tuesday, according to industry consultancy and data provider Mysteel.
Benchmark 62% Fe fines imported into Northern China rose 2.74%, to $106.32 per tonne.
In contrast, the steelmaking ingredient’s most-traded September contract on China’s Dalian Commodity Exchange ended daytime trade 0.4% lower at 716.50 yuan ($103.52) a tonne.
Even if the Chinese appetite for steel products improves later this year, iron ore will remain weak “for a long time” because of the government’s policy to curb output, Huatai Futures analysts said in a note.
China is considering limiting its steel output this year, according to analysts and recent unconfirmed reports, extending a two-year-old policy aimed at curbing emissions by the world’s largest steel producer.
(With files from Reuters)