Iron ore price up on potential easing of Tangshan restrictions

Tangshan steel works June 2014. Image by junrong

Iron ore price rose on Wednesday amid improved sentiment because of the possible easing of blast furnace restrictions in China’s Tangshan province, sources told Fastmarkets.

China’s top steelmaking city said in March it would punish firms that did not comply with its emergency anti-pollution plan, following weeks of smog in northern China.

Firms in the city’s heavy industry, including the steel and cement sectors, have been told to limit or halt production during heavily polluted days to reduce overall emissions of air pollutants – such as sulphuric dioxide or nitrogen oxide – by 50%.

Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were up 0.9%, changing hands for $216 a tonne, according to Fastmarkets MB.

China’s state planner and market regulator on Monday looked into spot market at the Beijing Iron Ore Trading Center and said they would closely monitor prices and investigate malicious speculation.