Iron ore price jumped on Tuesday, boosted by reports that steel hub Tangshan plans to ease requirements for production cuts at its mills.
The Tangshan government held a symposium on Monday, mulling to lower output curtailment ratio for some mills that had finished ultra-low emission upgrades, according to state-backed Securities Times, citing media reports.
Last month, officials in Tangshan warned its steel mills to maintain market order and safeguard companies’ normal operations.
The local government there said it would look into illegal behaviour including market manipulation and hoarding, and would punish and suspend businesses found guilty.
But an industry source told Reuters the plan is still under discussion and has not been officially approved yet.
Capital Economics’ latest report predicted iron ore prices could drop back to around $140 per tonne by end-2021, and $120 per tonne by end-2022.
However, Tuesday morning Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were up 5%, changing hands for $208.67 a tonne, according to Fastmarkets MB.
The most-traded iron ore futures on the Dalian Commodity Exchange, for September delivery, surged 7.3% to 1,170 yuan ($183.53) a tonne.
