The iron ore price fell again on Monday after China’s steel-producing province Yunnan asked local mills to adjust production schedules while ensuring that its 2021 crude steel output falls.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $123.84 a tonne, down 4.6% from Friday’s closing.
Part of the planned September crude steel production would be postponed to the last two months of the year, according to a government document.
The province, which makes about 2.3% of China’s total crude steel, has been missing energy consumption targets and suffering from power shortages. Yunnan also ordered its aluminum smelters to keep average monthly output for September-December at August volumes or lower and the cement industry to cut September production by more than 80% from August.
China has vowed to limit crude steel output this year at no higher than its 2020 production to curb industrial pollution.
The main theme of domestic favourable macro front remains unchanged, SHFE aluminium prices showed a ‘v-shaped’ rebound today
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