Iron ore price falls on China warning, production controls in Tangshan

The iron ore price fell on Monday after China’s state planner issued another warning against speculation in the market and fresh production curbs were imposed in major Chinese steel cities.

China’s National Development and Reform Commission said on Friday it would look yet again at measures to curb “unreasonable” iron ore prices and urged trading firms to avoid hoarding and inflating prices.

Tangshan, China’s top steel production hub, said on Monday it would launch a level 2 emergency response after heavy air pollution was forecast for this week. Handan, another major steel city, implemented similar curbs on March 17.

 Benchmark 62% Fe fines imported into Northern China fell 3.22%, to $126.75 per tonne.

“Some steel mills (in Tangshan) will reduce their sintering capacity between 30% and 50%,” said Wu Yuling, a Shanghai-based iron ore analyst at consultancy Mysteel.

Steel mills currently have enough sinter ore inventory to sustain normal production for around eight days, she added.

(With files from Reuters)