Iron ore price falls as China plans to cut steel production

Steelmaking. (Image by 綾小路 葵, Flickr)

Iron ore prices fell on Thursday as China reported a plan to again cut annual crude steel production this year.

Benchmark 62% Fe fines imported into Northern China retreated 2.51%, to $129.88 per tonne.

The most traded May iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 2.8% lower at 902 yuan ($130.75) a tonne after earlier hitting 897.50 yuan, its weakest since March 9.

China will again cut annual crude steel production in 2023, making it the third consecutive year that the government has mandated an output limit in line with its emission reduction program, Bloomberg reported.

No official announcement has been made about the plan.

Sinosteel said there was a “high probability” that steel mills will maintain “a stable increase in production” during the first half of 2023.

(With files from Reuters)