The price of iron ore futures traded on August 13 in China fell more than 4% and has been on a continuous downward trend due to sluggish steel production demand because of government control of steel output.

The price of iron ore futures traded on August 13 in China fell more than 4% and has been on a continuous downward trend due to sluggish steel production demand because of government control of steel output.
The China Iron and Steel Association said in a statement this week that factories that are more polluted or consume more energy should reduce steel output. They are also committed to ensuring that steel production in 2021 will decrease on a yearly basis.
Data from consulting firm Mysteel showed that blast furnace capacity utilization rates at 247 plants across China recovered slightly to 85.89% this week, but still far below 95.16% in the same period last year.
The most-traded iron ore futures on the Dalian Commodity Exchange fell 4.2 percent to 814 yuan ($125.66) a tonne, the lowest since March 24. For the week, iron ore futures fell 9%.
Spot iron ore with an iron content of 62þ fell $2 to $166/ton.
Other steelmaking raw materials were also mixed, with coke down 2.1% to CNY 2,198 a tonne and coke futures up 0.5% to CNY 3,137 a tonne.

The price of steel bar traded on the Shanghai floor on August 13 decreased by 1.3% to 5,462 CNY/ton.
The price of hot rolled coil, used in the manufacturing sector, fell 1.5% to CNY 5,760/ton.
Stainless steel futures in Shanghai fell 0.9% to 18,370 CNY/ton.

Source: VITIC/Reuters

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