Iron ore price falls on production curbs in China

Iron ore prices extended losses on Monday on concerns over near-term weaker demand, after steel production hub Tangshan was required on Saturday to shutter some capacity in response to heavy pollution.

Tangshan’s government said it would launch a level 2 emergency response from Sunday to deal with the forecast of heavy air pollution this week.

Several mills planned to reduce their sintering capacity between 30% and 50% to meet government requirements, consultancy Mysteel said in a report.

It was not clear how long the production restrictions would last. The city of Handan, also a key steel producer, implemented similar curbs on Sunday.

Benchmark 62% Fe fines imported into Northern China fell 3.28%, to $122.50 per tonne.