Analysts at Citigroup Inc. see the signals from China as a likely precursor for so-called supply-side reform 2.0. However, compared with 2015 to 2018, they see a less aggressive capacity cut, and a limited follow-up of demand measures, according to a research note.
Iron ore has lost about 15% over the past year as the economy in China — the world’s biggest consumer — continues to struggle. Demand prospects have also been dampened by ample supplies from Australia and Brazil, the top shippers.
