Iron ore price below $100 on China steel curbs

The iron ore price fell below $100 a tonne for the first time in over five weeks on signs that the crisis in China’s steel industry is worsening. 

According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $98.63 a tonne Tuesday morning, down 3%.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange ended daytime trade 5% lower at 682 yuan ($98.57) a tonne, having touched a one-week low of 680.50 yuan earlier in the session.

Steel prices also stretched losses after several Chinese cities, including Shenzhen and Dalian, escalated covid-19 restrictions to contain outbreaks.

Steel production in the key center of Tangshan will fall by more than 8 million tonnes in the second half due to plans to restrict output, Minmetals Futures said in a note on Tuesday. The hub produced about 75 million tonnes in the first six months, according to Mysteel.